The price movement of the EUR/AUD currency pair has been steered by a junior descending channel. The exchange rate has breached the lower boundary of a dominant ascending pattern on May 21 and this could indicate a long-term decline for the pair.
A strong resistance set by the 55– hour simple moving average has proved to have enough momentum to drive the rate further south. Furthermore, during this short period of decline, the pair has reached a five-month low level.
As for near future, it is likely that bears could continue their dominance in the market during the following trading sessions. However, a brief retracement to the upside is likely to occur within the next 48hrs.
