The decline from 2008 has such a huge impact on the EURAUD, that we are still trading at critical levels of the down move in 2015. The inverse Head and Shoulders has met its objective and more as the market now trades around the 38.2% of the huge 2008 decline.
Zooming into the daily chart, we see that the market has already found strong selling pressure on the 38.2% retracement mark once in Dec 2014. There are signs that the market is again facing strong selling at around 1.52 – 1.53 area, with a huge pin bar formed on the 12th Aug.
In my opinion, there is no reason that the market will trade out of the range between 1.3800 – 1.5250 for the time being. This scenario should hold true unless either of the two central banks hints at making a change in terms of their rate policies. My prediction is that the market will now slowly drift downwards toward the middle of the range and will end up at around the 1.4550 mark by the beginning of October 2015.