A four-week descending channel pattern has guided the common European currency towards January 31 low level at 1.5717 against the Australian Dollar. The currency pair declined by 0.64% in value during last week’s trading sessions.
As for the near future, it is likely that the EUR/AUD currency exchange rate will continue to maintain the four weeks descending channel pattern. Bearish traders could push the pair towards the bottom border of a dominant ascending channel at 1.5653.
However, a support cluster formed by the combination of the weekly and the monthly PPs at 1.5698 could provide support for the rate in the shorter term.