EUR/AUD Large Channel Setup

• EUR/AUD continues to trade within a large channel that dominated the price action since end of 2005
• High probability setup points to a move toward Channel's higher boundary
• Failure analysis points to a break below the Channel's lower boundary

Key Levels - Current Price: 1.6638

Level      Type           Significance
1.7823     Resistance   2004 High
1.7334     Resistance   78.6 Fib of the 1.7823-1.5539 AUD Rally
1.6951     Resistance   61.8 Fib of the 1.7823-1.5539 AUD Rally
1.6681     Resistance   50.0 Fib of the 1.7823-1.5539 AUD Rally
1.6412     Support        38.2 Fib of the 1.7823-1.5539 AUD Rally
1.6078     Support        23.6 Fib of the 1.7823-1.5539 AUD Rally
1.5536     Support        2005 Low

Weekly Chart

Daily Chart I

Daily Chart II

Daily Chart III

Sam Shenker is a Technical Currency Analyst for FXCM.