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In today's article, we are looking at the EURAUD currency pair, where a clean bearish pattern is developing that could push prices significantly lower in 2026.
EURAUD previously completed a falling leading diagonal, followed by an ABC corrective recovery. This corrective phase now appears complete, reinforcing the view that the broader downtrend is ready to resume.
EURAUD Weekly Chart
The pair has formed a lower swing high near 1.8155, followed by a strong sell-off that broke below the rising trend-line support drawn from the November 2024 lows. This move suggests that EURAUD has entered the third leg lower, likely to unfold as a five-wave decline from the October high.
EURAUD Daily Chart
Further downside pressure is expected during the first half of 2026. The bearish structure remains intact as long as price trades below the descending channel resistance near 1.76. Under this scenario, there is room for an extended decline toward the 1.70 handle in the coming months, with any interim bounces likely to be corrective rather than trend-reversing.
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