The common European currency has been confined by two months descending channel against the Australian Dollar. This pattern was formed on April 24 and has since guided the pair lower to a six-month low level.
The exchange rate has moved closer to the upper boundary of the descending channel and could be set for a breakout. Meanwhile, a support cluster formed by the weekly and the 100– hour simple moving average is providing support for the pair at 1.5447.
If and when the aforementioned breakout occurs, the EUR/AUD currency exchange rate could target the 200-hour SMA at 1.5661 during the following trading sessions.
