The Eurozone single currency has depreciated about 1.76% against the Australian Dollar during the last one week. The decline started when the currency pair tested the 200-hour simple moving average at 1.5972.
As for the near future, it is likely that the exchange rate will continue its journey south. The potential downside target during the following trading session will be near the lower boundary of an ascending channel pattern at 1.5419.
However, technical indicators flash strong buy signals on the weekly time-frame chart. If this signal is accurate, a possible upside reversal from a support level formed by the weekly S1 at 1.5687 could be expected.
