Australian Dollar Technical Outlook

Australian Dollar / US Dollar

Nothing has changed regarding long term bearish implications (5 wave decline from 2008 high indicates additional bearish potential and the corrective rally from .6000 confirms as much). RSI divergence along with mature wave structure at multiple degrees of trend (3 waves up from .6000, 5 waves up from .6245 and 5 waves up from .6950) favors a reversal. Similar to Cable, a flat correction could lead to a spike above .8096 before resumption of the bear. If that happens, then look to go short against the high.