Sideways Grind Continues for EUR/AUD as Traders Await Direction

In today’s technical analysis, let’s revisit the EUR to AUD pair, where we are still patiently waiting for a decisive breakout. The price action continues to coil tighter within a symmetric triangle formation, marked with black lines — a setup we initially highlighted back on June 26th. Since then, the pair has remained in consolidation mode, showing little directional commitment.

What’s new is the development of an additional structure within the triangle: a rectangle pattern marked with yellow highlights. This horizontal consolidation is forming as price volatility continues to shrink, indicating that a breakout may be imminent.

Overnight during the Asian session, EUR/AUD tested the upper boundary of the rectangle but was quickly rejected, suggesting a short-term bounce lower may be underway. However, a proper signal — either bullish or bearish — will only be generated once the price breaks decisively from this narrowing range.

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

As always with patterns like this, traders should be on alert for false breakouts, which can trap early entries and quickly reverse. Confirmation and follow-through remain key to validating any directional move.Source: https://www.axiory.com/analytics/technical-analysis/sideways-grind-continues-for-eur-aud-as-traders-aw