Australian Dollar Bearish Bias Confirmed

Commentary: We wrote yesterday that "with the rally stalling at the .9000 figure and with 9 waves up from .8051 (see last week?s analysis for more on this), the probability of a reversal is high.

We will wait for evidence (small 5 down) to confirm our bearish bias." Our bias is confirmed with the decline from .9032 proving impulsive. Near term resistance is at the 61.8% of .9032-.8917 at .8988. A rally to there would complete either wave 2 or b and lead to a larger decline.

Strategy: Look to get bearish following a rally through .8966, against