The Aussie dollar is correcting the rally from 0.5509 to 0.8007 and we have seen wave A complete with the test of 0.7106. The decline in wave A is clearly in three waves, which indicates a flat correction and therefore we are looking for wave B of 2 to return to the start of wave A near 0.8007 before wave C takes over and bring AUD/USD back down to just below the low of wave A at 0.7106 to complete wave 2.
Short-term, we will likely seen a temporary set-back close to 0.7175 before the next rally in wave B towards 0.8007.
