EUR/AUD 4H Chart: Channel Down

As EUR/AUD failed to sustain an upward momentum a month ago, it came under strong selling pressure. This has led to formation of the bearish channel that implies a ceiling at 1.48 (down-trend and 200-day SMA) and a target at 1.4450, on the condition that the currency pair breaks the support represented by the May 15 low.

Nevertheless, most of the technical indicators are bearish, suggesting this level should eventually give in and thus allow the dip to extend deeper. On the other hand, most of the traders consider EUR/AUD to be oversold, as evidenced by a  significant portion of the long positions open, namely 59%.