The common European currency has been appreciating against the Australian Dollar in a descending channel pattern since the beginning of December. The Euro has gained about 3.48% since December 3.
However, after hitting the upper boundary of the channel pattern at 1.5850, the exchange rate made a U-turn south. Currently, the pair is trading near a support cluster at 1.5670.
If this support level holds, the currency exchange rate will aim for the weekly R1 at 1.5992.
On the other hand, if the pair passes the cluster as mentioned above, it is likely bearish traders will push the EUR/AUD pair towards the 1.5400 mark.
