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EUR/AUD - Price Top and Broken Trendline

The euro fell last week after the ECB monetary policy meeting. The euro has been consolidating for the most part across the board. The EUR/AUD for example has been consolidating since rallying to 1.6585 in late August. The daily chart shows that there was something of a descending triangle with a base around 1.5575. 

EUR/AUD Daily Chart 10/24


(click to enlarge)

We can see that even earlier in October, price action showed a break of that descending triangle, but was supported at a rising trendline. Then, we saw a weak bounce that failed to reach back towards 1.60. Instead, it stalled and ended up falling further at the end of last week. This latest dip broke below the rising trendline as well as confirmed the price top. The 1.50 level is now a near-term target for the bearish outlook, while the 1.40 handle is a medium-term one for November/December.