EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8908; (P) 0.8926; (R1) 0.8948;
With 0.8877 minor support intact, further is expected in EUR/GBP/ Prior break of 0.8928 resistance indicates near term trend reversal. Decline from 0.9305 has completed at 0.8686 after hitting 61.8% retracement of 0.8312 to 0.9305. Further rise should be seen back to 61.8% retracement of 0.9305 to 0.8686 at 0.9069. Firm break there will target retest of 0.9305 high. On the downside, below 0.8877 minor support will dampen this bullish view and target 0.8771 support instead.
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.
EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5807; (P) 1.5859; (R1) 1.5895;
EUR/AUD reaches as high as 1.5976 so far and met mentioned target of 61.8% projection of 1.5258 to 1.5816 from 1.5626 at 1.5971. Intraday bias stays on the upside and break of 1.5971 will target 100% projection at 1.6184 next. On the downside, below 1.5823 minor support will turn intraday bias neural first. But near term outlook will remain bullish as long as 1.5626 support holds.
In the bigger picture, medium term rise from 1.3624 is still in progress for 1.6587 key resistance. At this point, we’d be cautious on strong resistance from there to limit upside. But decisive break will confirm resumption of long term rise from 1.1602. On the downside, break of 1.5153 support is needed to indicate completion of the medium term rise. Otherwise, outlook will remain bullish in case of pull back.
