The common European currency has been trading in a junior ascending channel pattern against the Australian Dollar since September 13. The currency pair retested a resistance cluster at 1.6347 during last week's trading sessions.
The exchange rate is currently trading near the bottom line of the junior ascending channel pattern at 1.6259 and could be set for a breakout.
If the breakout occurs, a decline towards a psychological support level at 1.6050 could occur within this week's trading sessions.
However, if the channel pattern holds, the currency exchange rate will most likely maintain the junior channel pattern this week.