Australian Dollar Reverses at 61.8%

Commentary: After testing .8450, the AUDUSD decline from .8459 to .8274 looks impulsive (5 waves) and the rally corrective (3 waves). This alone indicates that we should favor the downside.

Supporting the bear argument is the fact that the rally from .7673 stalled and reversed near the 61.8% of .8770-.7673 (.8413). The rally from .7673 is in 3 waves. A bearish stance is warranted against .8459 but the Kiwi structure looks very bullish, so be careful with the Aussie.

Strategy: Flip to bearish now, against .8459, target TBD