The common European currency has been declining in a descending channel pattern against the Australian Dollar since the middle of March. The currency pair breached the 50-, 100– and 200– hour SMAs during this period.
Currently, the exchange rate is testing a support level formed by the weekly S1 at 1.6905.
If the support level holds, a breakout through the upper boundary of the descending channel pattern could occur within this session.
However, if the currency exchange rate breaks the weekly S1, the EUR/AUD pair would continue to trade in the channel pattern during the following trading sessions.
