EUR/AUD Testing 9 Year Triangle Support

Current Price: 1.5878
Key Levels:

The EURAUD has traded within a triangle since October 1998. Price is approaching the support line, which is just above 1.5700. The next level of chart support is the June 2005 low at 1.5536. Trading below there gives scope to a longer term breakout. Also, an interesting long term chart is the GBPAUD monthly. The break below a 22 year support line this month has major bearish implications.

Near term, the EURAUD is likely to work higher in wave c of a flat correction (which is in the wave 4 position of one larger degree). Wave c would equal wave a at 1.5958 and resistance is reinforced by a potential channel line close to 1.6000. We do expect a break of last week?s low (1.5775) following the completion of wave 4.