EURAUD Weakens, Bears Target Key 1.72 Support Zone
Muhammad Faraz 
EURAUD Weakens, Bears Target Key 1.72 Support Zone
The EUR/AUD pair is currently showing signs of bearish momentum as price action consolidates near the 1.78 zone. After failing to sustain gains above the 0.236 Fibonacci retracement level at 1.77885, sellers appear to be regaining control. The chart structure indicates a potential move toward the 1.72 support zone in the coming weeks.
Fibonacci Retracement Levels and Market Context
Using the recent swing high at 1.95539 and swing low at 1.72432, the Fibonacci retracement tool highlights key resistance levels that have capped upside attempts. The price recently tested the 0.236 and 0.382 retracement levels but was unable to break higher, signaling fading bullish momentum. This rejection aligns with a broader downtrend visible since the April highs.
Bearish Breakdown Setup
The pair has been moving in a descending channel since late July, indicating consistent selling pressure. The inability to push beyond the 1.81259 (0.382 Fib) resistance level suggests that buyers lack the strength to reverse the trend. Volume patterns also reveal declining buying interest, further supporting the bearish scenario.
Support Zone at 1.72
The 1.72432 – 1.72265 zone stands out as a critical support area. Historically, this level acted as a springboard for strong bullish moves in March, but if tested again, the market could react differently depending on broader sentiment in the Euro and Australian Dollar. A decisive breakdown here could lead to further declines toward the 1.70 handle.
Potential Rebound Scenario
While the primary bias remains bearish toward 1.72, traders should watch for possible rebound signals near this support. A bounce from the 1.72265 area could trigger a corrective rally back toward 1.75, especially if macroeconomic catalysts favor the Euro.
Conclusion
Overall, EUR/AUD is leaning bearish with downside potential toward the 1.72 target in the near term. Technical indicators, Fibonacci retracement levels, and descending price structure all support the bearish case. Traders should monitor the 1.72 level closely, as price action there will be crucial in determining the pair’s next major move.
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