EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5854; (P) 1.5908; (R1) 1.5940;
EUR/AUD dips notably after failing to break through 1.5966 minor resistance. But it’s staying above 1.5837 support and intraday bias remains neutral. Price actions from 1.6189 are forming a corrective pattern. Below 1.5837 will extend the leg from 1.6139 and target 1.5773 support and below. But we’d expect strong support above 1.5621 to complete the pattern and bring rebound. On the upside, above 1.5966 support turned resistance will turn bias to the upside for 1.6139 resistance.
In the bigger picture, while there is bearish divergence condition in daily MACD, there is no clear sign of reversal yet. Current rally from 1.3624 could 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.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8728; (P) 0.8747; (R1) 0.8767;
As noted before, EUR/GBP’s rebound could have completed with three waves up to 0.8844. Deeper fall is in favor to 0.8679 support first. Break will affirm the bearish case that decline form 0.9305 is still in progress and target 0.8620 and below. On the upside, break of 0.8844 is now needed to revive the bullish case of reversal. Otherwise, outlook is now bearish even in case of recovery.
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.
