EUR/AUD 1D Technical Analysis: Is EUR/AUD Headed Lower?

EUR/AUD remains in a bearish channel, with resistance at 1.6301 and support near 1.6050 shaping its outlook.

Lismore Burke

Trading Education Office

Published on

October 12, 2026

In this article:

Euro vs Australian Dollar

----

EUR/AUD continues to trade within a well-defined descending channel, with a clear sequence of lower highs and lower lows guiding price action since June. Recent recovery attempts have repeatedly failed near channel resistance, keeping the broader bearish structure intact.

50-SMA Acts as Dynamic Resistance

The 50-period SMA near 1.6301 continues to cap rallies and reinforce the bearish trend structure.

The chart highlights multiple rejections from the moving average, suggesting sellers are consistently defending this area. The latest rally stalled near the 50-SMA before rotating lower, maintaining the pattern of lower highs.

Price Tests Channel Support

EUR/AUD is currently trading around 1.6050, near the lower boundary of the descending channel. This area has attracted buyers on previous occasions and remains the key near-term support zone.

The highlighted green circle shows a recent reaction from this area, although the rebound remains limited compared to previous recoveries.

Lower Highs Maintain Bearish Pressure

Each rally since July has failed both the channel resistance and the 50-SMA. This consistent pattern of lower highs suggests the downtrend remains firmly in place despite occasional rebounds from support.

RSI

The RSI is currently around 39.8, remaining below the neutral 50 level. While momentum has improved from oversold conditions seen in September, it remains relatively weak and continues to favour the broader downtrend

Trade with the region's leading broker

Start trading now.

Tags:

Trading Forex

Lismore Burke

Trading Education Office

View all articles

Disclaimer: The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell. The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI. Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.

See All

Forex