Commentary: Yesterday, we wrote that “the overlapping nature of the rally from .8794 is suggestive of an ending diagonal in the Aussie as well. A drop below .8951 would be the first signal of a top.”
The drop below .8951 led to a drop to .8831 very quickly. The decline from the top (.9077) looks just like the USDJPY decline. As such, the analysis is the same. If the decline unfolds in 5 waves, then we will look to get bearish on the pullback.
Written by Jamie Saettele, Technical Currency Strategist for DailyFX.com