Seeking another opportunity to purchase the Australian Dollar.
On the EUR/AUD chart this descending trend channel scenario is too attractive to ignore.
The 1.5600 significant psychological level, which may signal the end of the downturn, is the target of the pair's upcoming challenge of the channel resistance.
Around the upward hurdles indicated by the Fibonacci retracement tool, a brief dip may already trigger selling pressure.
Particularly, the 50% level may already be limiting progress at the important mid-channel area. This coincides with the 200 SMA dynamic inflection point, which strengthens its effectiveness as a ceiling.
The fact that the 100 SMA has already dipped below the 200 SMA indicates that the selloff is more likely to continue than to stop. At the same time, Stochastic is descending, suggesting that once negative pressure resumes, EUR/AUD may follow suit.
If that occurs, keep an eye out for a test of the channel bottom or the swing low near the 1.5250 level!
