EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5705; (P) 1.5789; (R1) 1.5833;
No change in EUR/AUD’s outlook as consolidation from 1.5886 is in progress. Intraday bias stays neutral, and with 1.5651 minor support intact, further rise would be seen. On the upside, break of 1.5888 resistance will extend the rally towards 1.6139/89 resistance zone. However, break of 1.5651 cluster support (38.2% retracement of 1.5271 to 1.5886 at 1.5651) will indicate near term reversal and turn bias back to the downside for 1.5271.
In the bigger picture, current development suggests that fall from 1.6189 is a corrective move and has completed at 1.5271 already. Key support levels of 1.5153 and 38.2% retracement of 1.3624 to 1.6189 at 1.5209 were defended. And medium term rise from 1.3624 (2017 low) is still in progress. Break of 1.6189 will target 1.6587 key resistance (2015 high).
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8870; (P) 0.8903; (R1) 0.8921;
EUR/GBP’s pull back from 0.8597 extends lower today but it’s staying well above 0.8815 support. Intraday bias remains neutral and further rise is still expected. On the upside, sustained break of 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963) should confirm completion of whole decline from 0.9305. EUR/GBP should then target 61.8% retracement at 0.9043 next.
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.
