For the best part of the last decade EUR/AUD has been an incredibly stable pair. It was stuck inside a 1.55/1.75 range with a few forays outside but basically very stable. Then we had a wild 30 big figure rally during the GFC above the top of the range to 2.05. From there we’ve seen a vertical collapse of 65 big figures. Last week’s low was at 1.4055 and we are not far away from there now. A break below will add fresh momentum to the downtrend. If the level is tested and holds, that opens the possibility of a double bottom which could lead to some significant short-covering. Yet another important level to keep in mind.