Australian Dollar Breaks .8500

[B]Commentary:[/B] As mentioned Friday, we are treating the decline as the beginning of larger wave 4 in the 5 wave rally from .7268. Over the next seversal weeks, the AUDUSD could decline to the former 4th wave at .8162.

However, since we are viewing this as a larger correction, trading is likely to prove choppy over the next several weeks (but chop lower). It is possible to count 5 waves down with an extended 3rd wave down from .8870, thus near term risk is to the upside towards .8545 and .8649. [B]Strategy:[/B] Flat