In my Elliott Waves update on the Australian Dollar posted in MarketWatch on 6 Febuary 2012, I had discussed my medium-term outlook for the AUD/USD. You might want to read that first.
The decline from the high of 1.0856 seen on 29 Feb is looking impulsive,but there is just a small chance that we could find some support around 1.0450/70 levels. Between 1.0450 and 1.0380 I would recommend that you don’t get involved. If you see a direct recovery towards 1.0620 you might consider a small short for a dip down to the 1.0480 levels. Only after we break down below 1.0380, the key level mentioned in my post on Wall Street Journals’ Market Watch should we start looking for where to sell aggressively for the medium term target below 0.8800.
If you would like to learn how to use Elliott Wave analysis, you should check out my book “Five Waves to Financial Freedom”