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Australian Dollar Technical Outlook

Monday, 04 August 2008 14:10:53 GMT

Written by Jamie Saettele, Senior Currency Strategist

This is a count that caught our eye this morning.  The line extended from the wave ii and iv highs produces is parallel with a line that extends off of the wave iii and iv lows.  A dip below .9283 is possible but expect a large countertrend advance this week before the decline resumes.  If this count is correct (in which wave iv is extended), then a rally all the way back to .96 is possible.  .9475 is expected at minimum.

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