EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5761; (P) 1.5825; (R1) 1.5859;
A temporary top is in place at 1.5887 and intraday bias is turned neutral for some consolidations first. Another rise is expected as long as 1.5596 support holds. On the upside, above 1.5887 will target 1.5984 support turned resistance. Break will bring retest of 1.6357 high. However, break of 1.5596 will indicate completion of the rebound and target 1.5346 support.
In the bigger picture, no change in the view that 1.6357 is a medium term top. But the strong rebound ahead of 1.5271 cluster support (38.2% retracement of 1.3624 to 1.6357 at 1.5313) suggests price actions from 1.6357 are developing into sideway consolidation, rather than a deep correction. The range of 1.5271/6357 is likely set for the consolidation. And we don’t expect a break of the range any time soon. But decisive break of 1.6357 will resume the larger up trend from 1.3624 (2017 low) to 1.6587 (2015 high).
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8966; (P) 0.9027; (R1) 0.9102;
Intraday bias in EUR/GBP remains on the upside for 0.9098 resistance. Decisive break there will extend the rise to 0.9304 key resistance next. On the downside, below 0.8988 minor support will turn intraday bias neutral and bring some consolidations first, before staying another rally.
In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). Sustained break of 0.8939 resistance will confirm that it’s in a medium term rising leg for 0.9098 and above. And for now, in case of another fall, downside will likely be contained by 0.8620/55 support zone to bring rebound.
