From Graeme Kennerley at Trade with Precision

On the Weekly chart the EURAUD has broken down through the key level of 1.4200 which is a key level for this pair.  This may provide opportunities to the short side during the balance of this week.20140826 twp1

With price having retraced onto 1.4200 support may become resistance and we may see a return to the down side.20140826 twp2

Looking in more detail on the 4 hourly, we can see a pullback into the sell zone with price action between the 10 and the 20 moving averages.

Notice how the 10, 20, 50 & 200 moving averages are aligned on the top side and are in the correct order, open and fanning.  The MACD and RSI indicators are also convergent to the short side.

The 4 hourly candle appears to be rejecting levels above 1.4200 with a long wick to the top side suggesting bearish sentiment   If the next candle breaks down below the close of this ‘trigger’ candle then shorting opportunities could arise.20140826 twp3

If the price were to break short, then, by looking at the Daily chart above, we can see there would be very little technical resistance in the way of a move much lower.