Commentary: The AUDUSD looks similar to cable in that the decline from the top (.8870) is in 3 waves. This leaves open several possibilities but we favor labeling the decline from .8870-.7675 as wave A.
The rally from .7675 is wave B (or just the first leg of wave B). We wrote last week that “strength may continue until the 100% extension of .7675-.8092/.7955 at .8374. The 61.8% of .8870-.7675 at .8413 defends this level as well.” The Aussie is may very well challenge this level in the next few days. We will be looking for a top and reversal near there. Strategy: Looking for a top and reversal near .8410