The AUD/USD has been heavily overbought for some time as evidenced by the over 10% gap between the 20-day and 200-day MAs. The 20-day is traditionally an excellent trading pivot for this pair and now that we are below it again, I prefer selling rallies back towards .7943 for the next big bear leg. The 61.8% retracement of the .8160/.7700 comes in at .7984 and I would be keeping my strategy stops well above this level.
