EURAUD Ready For Higher Highs?EUR/AUDOANDA:EURAUDEdgeTradingJourneyEURAUD continues to trade within a developing bullish structure after defending the 1.6200–1.6250 demand zone. Price recently reclaimed the ascending trendline and is now challenging a key daily Fair Value Gap around 1.6480–1.6510. The recent pullback appears corrective rather than impulsive. As long as price remains above the lower channel support, buyers maintain control of the medium-term structure. A retracement into the 1.6380–1.6420 imbalance area could provide the liquidity needed before a continuation higher toward the major supply zone around 1.6550–1.6680. COT Analysis The latest COT data shows a divergence between EUR and AUD positioning: 🇪🇺 Euro Non-commercial traders remain net long. Long positions increased while shorts decreased. Institutional positioning continues to support Euro strength. 🇦🇺 Australian Dollar Speculators remain net short AUD. Open interest contracted while short exposure remains elevated. Positioning continues to favor AUD weakness relative to stronger currencies. This creates a supportive backdrop for further upside in EURAUD. Seasonality Seasonality currently favors the Euro over the Australian Dollar. EUR historical June performance remains positive across the 5, 10, 15 and 20-year studies. AUD seasonal performance is mixed to negative heading into late June and early July. Relative seasonal strength therefore remains in favor of EUR appreciation versus AUD. Retail Sentiment Current retail positioning: 57% of traders are short EURAUD 43% are long EURAUD Retail traders are positioned against the trend, which is typically a contrarian bullish signal. The average short entry remains below current market price, suggesting potential fuel for further upside through short covering. Trading Scenario Primary Bias: Bullish Expected sequence: Short-term retracement into 1.6380–1.6420 Liquidity accumulation within the imbalance Bullish continuation above 1.6500 Expansion toward 1.6600–1.6680 supply Key Levels 🟢 Demand Zone: 1.6200–1.6250 🟢 Intraday Support: 1.6380–1.6420 🎯 Target 1: 1.6510 (Daily FVG) 🎯 Target 2: 1.6600 🎯 Target 3: 1.6680 (Major Supply)