This is an update to yesterday's AUDUSD triangle trade idea. Risk can be minimized to .8765. The target is below .8591 (new low).
The sideways trading that has taken place for the last few days is most likely a 4th wave triangle (similar to the GBPUSD pattern) that will lead to a terminal thrust from the 5th wave that ends below .8590. The January low at .8512 is potential support.
This is a close up of the triangle. The drop should accelerate. View a longer term perspective on another USD pair.
Jamie Saettele writes Forex Technicals: The Day Ahead, Monday-Thursday (published at 6 pm EST), Daily Technicals every weekday morning (9 am EST), COT analysis (published Monday mornings), and analysis of currency crosses throughout the week. He is also the author of Sentiment in the Forex Market. Contact at jsaettele@dailyfx.com
Jamie Saettele writes Forex Technicals: The Day Ahead, Monday-Thursday (published at 6 pm EST), Daily Technicals every weekday morning (9 am EST), COT analysis (published Monday mornings), and analysis of currency crosses throughout the week. He is also the author of Sentiment in the Forex Market.
Contact at jsaettele@dailyfx.com