Wednesday we wrote that “>.9330 can push prices to more important test at .9374”. Aussie did test a marginally better .9374 and now is reacting strongly lower. The rally to .94 took the shape of a bear flag which is expected to force additional downside this week. S/t, key resistance for this call is .9402 (and initial stop loss). The next downside target is bear flag support near .9285 but the minimum target is .9134 where wave-A=C. A more aggressive downside target is .8968 where the wave-A * 1.618 extension target surfaces. Aussie sales at current levels can use .9402 as a stop loss and .9134 as a take profit. Conviction: Med Levels: Support – .9285, .9134, .8968 Resistance – .9363, .9402
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