The European single currency has depreciated about 1.07% in value against the Australian Dollar since October 16. The decline was stopped by a support level formed by the 200– period simple moving average at 1.6232 during Friday’s trading session.
Most likely, the 200-period SMA could pressure the EUR/AUD currency pair higher within this week’s trading sessions. The potential target for bullish traders would be at the 1.6450 area.
However, if the currency exchange rate breaches the 200– period SMA, a breakout through the lower boundary of an ascending channel pattern could be expected in the nearest future.
