EURAUD Forming Descending Channel

EURAUD is currently trading within a well-defined descending channel on the 4-hour chart, showing a controlled bearish momentum after a strong rally earlier this month. However, recent price action suggests that the pair might be preparing for a potential breakout to the upside as the candles test the upper boundary of the channel. A clean break and close above 1.7680 could confirm a bullish reversal setup, potentially driving price toward the 1.7850–1.8000 zone in the short term. The pair is finding strong buying pressure near the 1.7600 area, which aligns with previous structural support, indicating that buyers are gradually regaining control.

From a fundamental standpoint, the euro remains supported as the European Central Bank maintains its cautious but steady tone regarding inflation control, while the Australian dollar faces pressure due to weaker commodity sentiment and softening economic indicators. The ongoing global uncertainty and mixed signals from the RBA are keeping AUD volatility elevated, which favors EUR resilience. Traders are closely watching upcoming inflation data and central bank comments for directional cues, but sentiment currently leans toward a possible EUR recovery if risk appetite improves.

A confirmed breakout above the channel could signal the start of a fresh bullish leg for EURAUD, especially if momentum continues building toward the 1.7900–1.8000 targets. As long as price holds above 1.7600, buyers remain in control with potential for a profitable upside move in the near term.