EUR/AUD Weekly Outlook

In the bigger picture, the sustained trading above the medium term falling trend line served as the first signal of trend reversal.

Despite a rally attempt last week, EUR/AUD lacked through follow through buying and retreated towards the end of the week. The development suggests that consolidation pattern from 1.2823 is still in progress. Initial bias remains neutral this week and deeper decline could be seen to 1.2505 and below.