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Australian Dollar Technical Outlook

Tuesday, 26 August 2008 14:00:24 GMT

Written by Jamie Saettele, Senior Currency Strategist

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.

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