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The Japanese Yen (left chart above) created a multi-year flag pennant pattern, reflected by a series of higher lows and lower highs. Once traders broke the bottom of the pennant, sellers rushed in, creating one of the largest currency declines we have witnessed in years.
Over the past few years the Australian Dollar has been forming a similar pennant pattern (right chart above) and of late traders look to have broken support of the pennant pattern at (1).
Is another key global currency about to bite the dust, due to the breaking of support of the large pennant pattern? Will sellers step in and drive the AU$ lower like they did the Yen?