EUR/AUD Bears Return: Will Price Break Below Key Support?

The EUR/AUD exchange rate has seen a rally in early trading on Wednesday, but this was short-lived as sellers returned to drive prices back down.

According to Christopher Lewis of DailyForex, who specializes in chart-based analysis of major currency pairs, the Euro's initial attempt at breaking above 1.66 was met with hesitation.

The current price is sitting just above a key support level of 1.61, which extends down to 1.60. A breakdown below this level could trigger another sell-off, potentially leading to a measured move of about 600 pips.

Lewis notes that the market has been stuck in sideways action for some time, and that breaking above 1.66 would be required for him to consider a longer-term buy-and-hold strategy.