EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.6053; (P) 1.6096; (R1) 1.6119;
EUR/AUD lost some upside momentum as seen in 4 hour MACD. But with 1.6015 minor support intact, further rise is mildly in favor to 1.6189 high. Firm break there will resume medium term rise from 1.3624 and target 1.6587 key resistance. On the downside, below 1.6019 minor support will turn focus back to 1.5773 instead.
In the bigger picture, while there is bearish divergence condition in daily MACD, there is no clear sign of reversal yet. EUR/AUD also drew strong support from 55 day EMA and rebounded. Current rally from 1.3624 could still extend to 1.6587 key resistance (2015 high). Nonetheless, we’d expect further loss of upside momentum, and strong resistance from 1.6587 to limit upside and bring reversal.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8722; (P) 0.8736; (R1) 0.8744;
EUR/USD is staying in consolidative trading and intraday bias remains neutral first. Further rise is expected as long as 0.8688 minor support holds. Break of 0.8797 will extend the rise from 0.8620 to key cluster resistance at 0.8967 (50% retracement of 0.9305 to 0.8620 at 0.8963) next. On the downside, break of 0.8688 minor support will dampen the bullish case and turn focus back to 0.8620 instead.
In the bigger picture, for now, the decline from 0.9305 is seen as a leg inside the long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we’d be cautious on strong resistance by 0.9304/5 to limit upside. Meanwhile, in another decline attempt, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
