The AUD/USD pennant continues developing and the pair has reached its resistance trend line twice and the support trend line three times. We know that this is a trend continuation figure and after the breakout below the support trend line we can expect at least 1000 pips move south, which is the height of the figure at its base. Possibly there could be an even bigger drop.ь=
The figure is developing in the long term and for the moment the pair has not reached the support trend line on the D1 time frame (100 – 120 pips are left). Once it does reach it we should watch it closely to see whether there will be a breakout or not.
Observing the volumes of every bar will also help, because, as we know, initially after a breakout the volumes drop which confirms the formation of the figure, and after that they should rise.
Either way, the pair is forming a clear pennant figure and finding a suitable entry is an excellent chance to open profitable long term short positions.