Guest Commentary: Want to Make 'Big Profits' on AUD/USD? Buy Yourself a Comfortable Chair!
Jesse Livermore once said it wasn't "the thinking that made him big money but the sitting." And we have done a lot of sitting since the Aussie retested and ultimately failed the key 1.0575-1.0620 medium term triangle resistance.
So having maintained the break of the pivotal 1.0490 the Aussie has followed the two previous triangle tops to hit the initial 1.0395 short term target. Now this should be enough for a short term corrective recovery back through 1.0430 to 1.0460 the 38.2% retracement within a pivotal but bearish 1.0390-1.0490 consolidation.
So we are reducing shorts today below 1.04 and will be tempted to resell the rally against 1.0490. However beware the Sierpinski's triangle within a triangle highlighted on the daily perspective and the continued collapse in volatility before the Aussie can really threaten 1.0150. A break down then later this week the previous 1.0345 low will probably end the current triangle downswing and threaten further 1.0345-1.06 consolidation and another retest of the 1.0575-1.06 triangle resistance. If we don't completely square shorts closer to 1.0345 we may to buy a more comfortable chair.
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