The common European currency has been appreciating against the Australian Dollar since the middle of August. This movement was bounded by a seven-week ascending channel pattern.
Currently, the EUR/AUD currency pair is trading near the lower boundary of a one-week ascending channel and the three SMAs at the 1.6174 mark and could be set for a breakout.
However, from a theoretical point of view, it is expected for the currency exchange rate to hold that support level at 1.6174 then pullback towards the weekly pivot point at 1.6228 during the following trading sessions.
