The single European currency has been appreciating against the Australian Dollar since mid-August. The rate reversed from the lower boundary of an ascending channel at 1.5598 on August 17.
The exchange rate made a U-turn south from a resistance level at 1.6338 on September 11, and currently trading near the bottom border of a one-month ascending channel. From a theoretical point of view, a breakout could be expected within this session.
However, technical indicators suggest that this decline might not be immediate. The currency exchange rate could reverse from a support line at 1.6185 and aim for a re-tests of the monthly R1 at 1.6338 during the following trading sessions.
