Australian Dollar Technical Outlook

We got the drop to a new low and test of .85 but there is no evidence of a bottom yet. As long as price is below .8688, the AUDUSD is vulnerable to additional weakness.

Again, there is a count that treats the decline from .8813 as wave x (since the decline is in just 3 waves). Under that count, price would exceed .8813 before dropping to a new low. Yet another count treats the drop as wave i of an ending diagonal. There are many possibilities right now…too many to make a confident forecast.