Although the Aussie has failed marginal new highs, the downside reaction is thus far holding tight 93.60 uptrend support. Notice how the initial downside correction on this chart labeled wave 2 was a simple zig-zag pattern. By the rule of alternation, that would explain the premature break to new highs at 94.65 and the corresponding downside break in a complex or irregular 4th wave correction. Thus as the 93.20 base and more importantly the 92.75 pivot point holds, we must respect the integretity of the uptrend with the potential to extend to 95.60. From this level or a direct loss of 92.75 there is room for a more serious downside correction to the entire 87.70 to 95.60 rally.
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Duration: 1m 1s
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