The single European currency has depreciated about 1.72% in value against the Australian Dollar since June 17. A breakout occurred through the lower boundary of an ascending channel pattern at 1.6266 on Friday.
Given that a breakout had occurred, it is likely that the EUR/AUD currency pair will continue to lose strength during the following trading sessions. Bears could drag the exchange rate towards a swing low at 1.6043.
A potential upside reversal from the swing low as mentioned above could follow in the short term.
Meanwhile, technical indicators flash buy signals on the weekly time-frame chart.
