EURAUD Bounce Before Another Leg Down?EUR/AUDOANDA:EURAUDEdgeTradingJourneyEURAUD is currently reacting from a major daily demand zone around 1.64, after an extended bearish leg inside a clear descending channel structure. From a positioning perspective, COT data shows EUR longs being reduced while AUD positioning has improved. At the same time, retail sentiment remains heavily long (around 80%+), which typically supports a contrarian bearish continuation in the bigger picture. Technically, structure is still bearish: lower highs and lower lows remain intact. However, price is now sitting at a strong demand base, which increases the probability of a corrective bounce before any further continuation. My base scenario is a relief rally toward the 1.67–1.69 supply area, where I would reassess for potential short continuation setups in alignment with the broader trend. A clean break and acceptance below the current demand would instead open the door for immediate continuation lower. As always, reaction > prediction. I’m watching how price behaves inside this zone before committing to the next swing leg.