EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5932; (P) 1.5995; (R1) 1.6077;
EUR/AUD’s rally is in progress and reaches s high as 1.6081 so far. Intraday bias remains on the upside for target 100% projection of 1.5271 to 1.5886 from 1.5601 at 1.6216, which is close to 1.6189 high. On the downside, below 1.5953 resistance turn support will turn intraday bias neutral and bring consolidation first, before staging another rally.
In the bigger picture, EUR/AUD drew strong support from 55 week EMA and rebounded. And the development argues that medium term rally from 1.3624 (2017 low) is still in progress. Firm break of 1.6189 will target a test on 1.6587 (2015 high). On the downside, break of 1.5601 support will now be the first sign of medium term reversal, and will bring a test on 1.5271 key support for confirmation.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8948; (P) 0.9021; (R1) 0.9058;
EUR/GBP’s rejection from 0.9097 was rather strong and it drops sharply to as low as 0.8971. For now, deeper pull back could be seen. But the cross is staying inside rising channel and well above 0.8895 support. Larger rally from 0.8620 is still expected to extend higher. Break of 0.9097 will target a test on 0.9305 high. Though, sustained break of channel support will be the first sign of reversal, and focus will be turned back to 0.8895 for confirmation.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). The corrective structure of the fall from 0.9305 to 0.8620 is raising the chance that rise from 0.8312 to 0.9305 is an impulsive move. But we’re not too confident on it yet. In any case, we’d stay cautious on strong resistance from 0.9304/5 to limit upside in case of further rally. Meanwhile, if there is another medium term decline, strong support will likely be seen from 0.8303 to contain downside.
