EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8871; (P) 0.8896; (R1) 0.8938
Intraday bias in EUR/GBP remains neutral first. On the upside, firm break of 0.8939 resistance will confirm completion of the fall from 0.9098 and turn outlook bullish for this resistance. On the downside, below 0.8810 will turn bias to the downside for 0.8655 low instead.
In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). Sustained break of 0.8939 resistance will confirm that it’s in a medium term rising leg for 0.9098 and above. And for now, in case of another fall, downside will likely be contained by 0.8620/55 support zone to bring rebound.
EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5518; (P) 1.5554; (R1) 1.5604
EUR/AUD recovered after breaching 1.5519 and intraday bias is turned neutral first. On the downside, sustained break of 1.5519 will resume the fall from 1.6357 and target 1.5271/5313 cluster support zone next. On the upside, above 1.5633 minor resistance will delay the bearish case and extend the consolidation from 1.5519 with another rise. But upside should be limited by 38.2% retracement of 1.6357 to 1.5519 at 1.5839 to bring fall resumption eventually.
In the bigger picture, current development argues that up trend from 1.3624 (2017 low) is possibly completed at 1.6357, ahead of 1.6587 (2015 high). This is supported by bearish divergence condition in weekly MACD. Deeper decline is now in favor to 1.5271 cluster support (38.2% retracement of 1.3624 to 1.6357 at 1.5313). Break will target 61.8% retracement at 1.4668. On the upside, break of 1.5984 support turned resistance is now needed to revive the prior medium term up trend. Otherwise, further decline will be in favor even in case of strong interim rebound.
