The EUR/AUD made a pullback to the 38.2% Fibonacci level of wave 4 (green), which proved to be a reversal spot for a downtrend continuation. Price is now in a downtrend channel.
The EUR/ AUD is now in a potential wave 3 (orange) and could move lower towards the Fibonacci targets. A bullish bounce could indicate a retracement within wave 4 (orange) as long as price does not break above the bearish channel.
The EUR/AUD is testing a key support trend line (green) but the bearish momentum is strong, which is why a bearish breakout as part of a wave 5 (green) is the most likely scenario at the moment.