Technical Analysis of EUR/AUD

Current Market Situation

As of July 3, 2025, the EUR/AUD currency pair is experiencing a period of consolidation, characterized by a symmetric triangle formation. This pattern indicates that traders are awaiting a decisive breakout, which has yet to materialize since the last analysis on June 26.

Price Action and Patterns

The price action has been coiling tighter within the triangle, and a new structure has emerged: a rectangle pattern highlighted in yellow. This indicates a horizontal consolidation phase, with decreasing price volatility suggesting that a breakout could be imminent.

Recent Developments

During the Asian trading session, the EUR/AUD pair tested the upper boundary of the rectangle but faced a quick rejection. This movement suggests a potential short-term bounce lower. However, a definitive signal—either bullish or bearish—will only be confirmed with a decisive break from the current narrowing range.

Potential Breakout Scenarios

A confirmed hourly close above both the triangle and rectangle resistance levels would trigger a buy signal, likely leading to bullish momentum. Conversely, a break below the lower bounds of these formations would indicate renewed bearish pressure, potentially opening the door for a deeper correction.

Trader Caution

Traders are advised to remain vigilant for false breakouts, which can trap early entries and lead to rapid reversals. Confirmation and follow-through are essential to validate any directional moves in the market.