[B]Commentary[/B]: We wrote yesterday that “a rally through .7838 would complete 5 waves from .7714 and set the stage for additional gains.” Kiwi did rally through .7838 but a correction may be unfolding near term that brings price back towards .7790.
The pattern is not super clear but it is workable. A cautious bullish bias is warranted close to .7790, against .7714. We say cautious because the longer term structure indicates reversal potential (see previous daily techs for longer term analysis). Also, the measured objective for the AUDUSD is just above .8700. Given that the Aussie is close to this level and that Kiwi and Aussie are correlated, upside potential is likely limited.