EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8893; (P) 0.8925; (R1) 0.8943;
EUR/GBP continues to lose upside momentum, as seen in 4 hour MACD. Still, with 0.8877 minor support intact, further rise is expected. 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) 1.5753; (P) 1.5846; (R1) 1.5904;
Break of 1.5823 minor support indicates short term topping at 1.5816, on bearish divergence condition in 4 hour MACD. Intraday bias is turned to the downside for pull back. At this point, we’d expects strong support from 1.5626 to contained downside to bring rebound. But break of 1.5976 is needed to confirm up trend resumption. Otherwise, more consolidation would be seen first.
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.
