Australian Dollar Short Term Bearish Opportunity

Commentary: We wrote here on Friday that "the decline from .8476 is in only 3 waves, which is corrective, so the trend remains bullish above .8365. However, RSI has declined from overbought on intraday charts and exhibits divergence on the daily, so it seem more likely that this is the beginning of a deeper correction.

Yesterday?s long wick and key reversal day also favors the downside. Short term bearish opportunities exist as long as price is below .8443." A small c wave is expected to unfold from .8447 (or close to it). Measured objectives are at .8336 and .8267 (100% and 161.8% extensions of .8467-.8365/.8447). The longer term structure remains bullish though. Strategy: Bearish now, against .8467, targeting .8353 and .8300