Australian Dollar Drops Under .8400

[B]Commentary:[/B] We wrote of two scenarios yesterday. The second one "has wave C of 4 still in progress and therefore price continuing lower towards the 100% extension of .8870-.8444/.8661 at .8235 before a low is extablished.

A drop under .8398 strongly suggests that this is playing out". The drop under .8398 occurred and we are looking for a drop to .8235. This remains our bias unless .8504 is taken out, at which time bullish potential comes to the forefront. [B]Strategy:[/B] Flat