EUR/AUD hardly bounced at the end of the month and was down a whopping 5.7% in July.
Looking at the monthly chart, the declines in this pair have been staggering.
Beginning in 2009, EUR/AUD declined for 15 straight months. Since then, the pair has never rallied in more than two consecutive months. The cumulative decline since Nov 2008 is nearly 9300 pips.
The 1000-pip decline since the beginning of June is the largest of any two-month period since Oct-Nov 2010 and that marked an interim low that was followed by a 1200 pip rebound.
The trend is clearly down but the current level is consistent with oversold conditions that have resulted in countertrend rallies in the past.
