EUR/AUD Consolidates

Taking a look at the EUR/AUD monthly timeframe, you can see we have highlighted a large part of the chart. This in fact the last four years of price movement. You should be able to see that the pair has not been showing any trending movement for a long while. A break out of this area would hopefully lead to a long term trend.

Looking at the broader picture, a break above 1.60 would take us outside of the resistance which is currently between 1.60 and 1.35. The pair has been in consolidation for years which is a long time for any currency pair to be trading sideways so we could expect a break above the resistance channel.

Major bull target is seen at 1.60 and above, while major bear target is seen at 1.35 and below.

Chart: EUR/AUD M1