We have been bullish and Long the Aussie but not any more...
* Aussie remains within a 1.0225-1.0475 consolidation within a correction and therefore vulnerable in the medium term.
* It is possible the rally to the 1.0465 Equality Target could have ended a correction.
* We squared longs and are looking to sell provided the Aussie maintains the current bearish price action.
The Aussie has rallied well from the 1.0225-50 double bottom but not well enough to suggest we should stay long in a likely 1.0225-1.10475 consolidation.
Indeed the possibility of having ended a five wave C leg at the 1.0470 equality target and therefore a correction cannot be ignored. So we have squared longs looking for a loss of the previous 1.0400 minor high should confirm a top for an initial 1.0330-55 the 50-61.8% retracement as the first leg of a larger decline. It as the next rally again fades below 1.0475 that we will sell for a deeper decline to attack the 1.0225-40 lows.
Failure to sustain this weakness or indeed a rally now through 1.0475 would extend the recovery to 1.0520 and our original 1.0605-65 corrective target area.
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