EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.6083; (P) 1.6133; (R1) 1.6210;
EUR/AUD’s rebound from 1.5984 is in progress but upside is held below 1.6252 resistance so far. Intraday bias remains neutral first. Price actions from 1.6353 are seen as a correction. In case of another fall, downside should be contained above 1.5886 cluster support (61.8% retracement of 1.5601 to 1.6353 at 1.5888) to bring rebound and then rise resumption. On the upside, break of 1.6252 resistance will target a retest on 1.6353 first.
In the bigger picture, up trend from 1.3624 (2017 low) is still in progress. Further rise should be seen to retest 1.6587 (2015 high). Decisive break there will resume the long term rally and target 1.7488 fibonacci level. On the downside, break of 1.5886 resistance turned support is need to be the first sign of medium term reversal. Otherwise, outlook will remain bullish in case of deep pull back.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8848; (P) 0.8884; (R1) 0.8908;
Intraday bias in EUR/GBP remains neutral for the moment and outlook is unchanged. While the pull back from 0.8994 is deep, the structure still suggests that it’s a correction. Thus we’re holding on to the view that fall from 0.9097 has completed at 0.8847 already. On the upside, break of 0.8994 will target a test on 0.9097 high. Firm break there will resume the rise from 0.8620 towards 0.9305 high. Though, break of 0.8847 will bring deeper fall to 61.8% retracement of 0.8620 to 0.9097 at 0.8802.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). At this point, there is no clear sign of range break out yet. And more corrective trading would continue. On the upside, in case of another rise, 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.
