Wham Bham - My two opposing views seem to be reconciling.

Over recent weeks, I have followed 2 trades.

1) The possible top (or temporary top) forming in the Bund (Suggesting a pause in risk aversion).
2) The possible collapse of the AUDUSD towards low 90s/high 80s. (Suggesting risk aversion).

Clearly these two things could not happen together. One had to win out. - The past 2/3 days had suggested that 1) the bund was likely to win. - I now believe we may see a deeper retrace on the bund towards the low 130s. (I favour around 131).   - I also think we may see AUDUSD rally toward 102/103. --- In these volatile conditions, I would not expect either journey to be without some sharp corrections, and possible strong overshoots.

I also think that this may settle the question of how the AUDUSD 3 Peaks pattern was unfolding, (See posting of 12th September), it would favour the pattern now unfolding as Option 1....  - And may set-up a great shorting opportunity around the 102/103 area. ---(Once again with the caveat that this may not turn out to be a true '3 Peaks and DH' pattern.)

FWIW - Ed Carlson, who has just brought out a brilliant book about George Lindsey, the person behind this elusive pattern, says that the '3 Peaks and DH' pattern was intended to be used on equities-only. And although that wouldn't stop one from using it on currencies, it should not to be used in isolation, rather as part of an integrated approach using all of Lindsay's methods. Without those other methods, 3PDh doesn't provide enough info to be certain of its forecast. )