Australian Dollar Triangle?

Commentary: After breaking below the short term support line drawn off of the 8/29 and 8/31 lows, the AUDUSD rallied right back to .8290, negating our bearish bias. The pattern since the 8/27 high at .8333 is certainly corrective but so is the rally leg from .7673 to .8333.

The evidence suggests that a large complex correction is unfolding and that there will be one more rally leg (above .8333). However, it is unclear whether or not this rally will occur before or after a drop below .8171. If a triangle is unfolding, then the break higher will occur with .8171 remaining intact. For this reason, a cautious bullish bias is warranted. Strategy: Flat