EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8669; (P) 0.8709; (R1) 0.8739;
Intraday bias in EUR/GBP remains on the downside for the moment. Rebound from 0.8620 should have completed at 0.8790 already. Deeper fall would be seen back to 0.8620 low. As EUR/GBP was rejected by falling 55 day EMA, recent decline is possibly still in progress. Break of 0.8620 will resume the whole fall from 0.9305 and target 0.8303/12 support zone. On the upside, though, above 0.8796 will resume the rebound from 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.
EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5986; (P) 1.6048; (R1) 1.6083;
The rebound from 1.5773 should have finished at 1.6139 already. Intraday bias is mildly on the downside for 1.5773 and possibly below. Nonetheless, as long as 1.5621 support holds, we’ll treat price actions from 1.6189 as a consolidation pattern and expect another rise through 1.6189. On the upside, above 1.6139 will target 1.6189 high again.
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. On the downside, sustained break of 1.5621 support should confirm reversal and turn outlook bearish for 1.5153 support and below.
