EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5894; (P) 1.5926; (R1) 1.5969;
The breach of 1.5945 suggests that rise from 1.5601 is resuming. Intraday bias is turned back to the upside for 61.8% projection of 1.5271 to 1.5886 from 1.5601 at 1.5981 first. Break will target 100% projection at 1.6216, which is close to 1.6189 high. On the downside, though, below 1.5874 minor support will argue that consolidation from1.5945 is extending with another fall before completion. And the larger rally is going to resume later.
In the bigger picture, EUR/AUD drew strong support from 55 week EMA and rebounded. And the development argues that medium term rally from 1.3624 (2017 low) is still in progress. Firm break of 1.6189 will target a test on 1.6587 (2015 high). On the downside, break of 1.5601 support will now be the first sign of medium term reversal, and will bring a test on 1.5271 key support for confirmation.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.9060; (P) 0.9080; (R1) 0.9107;
Intraday bias in EUR/GBP remains on the upside at this point. Current rally from 0.8620 is in progress for retesting 0.9305 key resistance. On the downside, below 0.9033 minor support will turn bias neutral and bring consolidations. But near term outlook will stay bullish as long as 0.8895 support holds.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). The corrective structure of the fall from 0.9305 to 0.8620 is raising the chance that rise from 0.8312 to 0.9305 is an impulsive move. But we’re not too confident on it yet. In any case, we’d stay cautious on strong resistance from 0.9304/5 to limit upside in case of further rally. Meanwhile, if there is another medium term decline, strong support will likely be seen from 0.8303 to contain downside.
