Australian Dollar Flat Correction

[B]Commentary:[/B] Bigger picture, the decline from .8870 is the beginning of larger wave 4 within the 5 wave rally from .7268. Over the next several weeks, the AUDUSD could decline to the former 4th wave at .8162. Wave A of the decline ended at .8458 and wave B is underway now.

Wave B is unfolding as a flat. The last leg of the flat is unfolding now and could extend to above .8615 before wave C of the correction brings price much lower. The limit for wave B of this correction is .8399 (138.2% of .8458-.8614). A drop under there suggests that something more bearish is unfolding. [B]Strategy:[/B] Flat