AUD - HIGHLY SPECULATIVE VIEW.

GOVERNMENT HEALTH WARNING - This following 'Technical View' is highly highly speculative. - However, if it comes out right, there could be potentially a major move on AUD , but treat with caution at this stage,,, there would be plenty to be made on it if it does occur.

There is a very rare and highly speculative technical formation called a '3 Peaks and a domed house pattern'. I first heard about it some years ago, and I first applied it to the 'Banking Index' a few years back, which fortunately kept me on the right side of the 2008 bear market. - I am curious as to whether we are seeing a completed or near completed 3 peaks on the AUDUSD? - I shall not delve into the details of this pattern, if you want to know more this link here covers it.

The AUDUSD weekly chart is below together with the idealized 3 peaks pattern. - (I have only numbered the key points on the AUDUSD chart).

For comparison, I have attached below the Bank Index chart I identified a few years back together with its 3 peaks chart.

Some points
1: What the pattern is forecasting is a huge drop in the AUD, however, it is not clear whether the top is in, or whether there is still a high to come, before the top is in. - I would say this may be a 50/50 call at this stage. If the top is not in, then is probably a couple of months away at least.
2: I assume a deep correction of this nature for the AUD would surely be echoed in deep corrections in risky assets.
3: I am not saying that this is definitive, not at all, this is a highly elusive pattern, which even when it appears as though it may have formed, can just turnout to be something else entirely. However, as you can see from the Bank Index above, when it does occur, it portends something really nasty.