April 21, 2009

My whole AUDUSD neural net model is shot to hell because of the massive selloff last year, so I’m forced to rebuild it from scratch.  As I ponder the inputs for the model this time, I’m spending time familiarizing myself with that market again.

So what do I do?  Well I pull up a chart of the AUDUSD currency pair and slap a Fibonacci Retracement tool on it.  Its amazing how many traders use this tool because prices tend to “retrace” to certain price levels BECAUSE so many traders use Fibonacci.  Self full-filling prophecy I guess.

Anyway, I’d be playing a breakout of 0.7461 in this currency pair, if it can ever get there.

audusud-042109(click to enlarge)