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EUR/AUD Price Forecast: Falls below 1.6100 as head and shoulders surfaces

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  • Euro experiences significant sell-off, dragging EUR/AUD below critical support levels to its lowest since October.
  • Technical analysis indicates a confirmed head-and-shoulders pattern, suggesting extended downward momentum.
  • Immediate supports are eyed at October's low of 1.6003 and June 2023's low of 1.5848, with a pattern target near 1.5750.
  • Resistance levels to watch include 1.6200 and the 50-day SMA at 1.6283 if there is a reversal in bearish sentiment.

The Euro fell sharply against the Australian Dollar late in the North American session on Thursday. The single currency was the laggard of the FX space, with the EUR/USD pair falling to new yearly lows beneath 1.0500 and dragging the EUR/AUD pair below 1.6100 for the first time since early October. At the time of writing, the cross trades at 1.6087, down 0.70%.

EUR/AUD Price Forecast: Technical outlook

The EUR/AUD is biased downward. A head-and-shoulder pattern emerged, further confirmed by the exchange rate, diving below the neckline at around 1.6200 and opening the door for further downside. If the cross breaks below the October 2 swing low of 1.6003, the next support emerges at the June 15, 2023 low of 1.5848 before aiming for 1.5800. If surpassed, the next stop would be the minimum objective for the head-and-shoulders at around the 1.5750-75 range.


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