EUR/AUD 4H Chart: Descending Triangle

The apex of the present pattern can be reached by the end of next week; however, we suggest the break-out can happen sooner than anticipated. According to weekly technical indicators, the outlook is quite positive. On the contrary, 4H and daily studies are cautious in their projections, while SWFX sentiment is broadly neutral toward EUR/AUD. From the north the pair is capped by the weekly pivot point and 55/100-period moving averages at 1.5816/93. At the same time, bulls may rely on support from the monthly pivot point and 200-period SMA at 1.5632/07. These conditions complicate the near term forecast, making a "hold" stance more appropriate to choose and wait for additional market signals.