EUR/AUD 4H Chart: Set to decline

The common European currency has continued to trade in the same pattern against the Australian Dollar for some time. Although, there are some minor developments that are explained in this analysis.

Mainly, a junior channel down pattern has been discovered in the borders of the medium term channel down pattern. The channel has already done its main task of guiding the pair to the upper trend line of the dominant pattern.

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The common European currency has extended its decline against other currencies during the past few trading sessions. However, one of the most notable chart, where this decline can be observed is the EUR/AUD chart.

It can be observed that the currency exchange rate during the decline of the Euro has passed a dominant channel’s lower trend line, which managed to hold only for a couple of weeks.

However, the decline was already stopped by the support of a junior channel down pattern. It can be expected that this trend line will guide the rate down to a strong support cluster, which is located near the 1.5180 mark.