AUDUSD - 6.5% - 9% downside potential

We have to start with a very big IF for the Aussie pair. Although we saw a clean break on Friday, we have not seen a valid retest yet. Furthermore, the S&P 500 is just dealing with its major support level. So, A rejection of the S&P level could lead to a correction.

Nevertheless, the clearest path is definitely to the downside for the Aussie. The Chinese market just keeps getting hammered which is then driving down the AUD as well.

Again, IF we can hold below 0.685, the FIB target is pointing to 0.637 or 0.60 which is also the low from 2008/2009. We keep saying it but, this week is going to be really important for the future course of the Aussie.