EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5888; (P) 1.5964; (R1) 1.6006;
EUR/AUD formed a temporary top at 1.6039 and retreated since then. Intraday bias is turned neutral first. But further rally is still expected in the cross. Above 1.6039 will resume the larger rise to 61.8% projection of 1.5130 to 1.5976 from 1.5621 at 1.6130 first. Break there will target 100% projection at 1.6444 next. However, break of 1.5791 minor support will be an early sign of near term reversal. In such case, focus will be turned back to 1.5621 support.
In the bigger picture, current development suggests that rise from 1.3624 is not completed yet. And it’s still in progress for 1.6587 key resistance level. We’d be cautious on strong resistance from there to limit upside, on bearish divergence condition in daily MACD. But for now, break of 1.5153 support is needed to indicate medium term reversal. Otherwise, outlook will stays bullish even in case of deep pull back.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8726; (P) 0.8762; (R1) 0.8780;
EUR/GBP’s fall resumes after brief consolidation and intraday bias stays on the downside. Current decline from 0.8967 should target to retest 0.8686 low. We’d be cautious on strong support from there to bring another rebound. But decisive break of 0.8686 will resume whole fall from 0.9305 and target 0.8303 key support next. On the upside, above 0.8798 minor resistance will turn bias neutral and bring recovery first, before staging another fall.
In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of deeper fall. And in that case, EUR/GBP could have a retest on 0.8303. But we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
