EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5590; (P) 1.5651; (R1) 1.5699;
Intraday bias in EUR/AUD remains neutral at this point, with near term bearish outlook. On the downside, break of 1.5578 will extend the fall from 1.5888 to 61.8% retracement of 1.5271 to 1.5888 at 1.5507. Sustained break there will pave the way to retest 1.5271 low. Nonetheless, on the upside, break of 1.5701 minor resistance will argue that fall from 1.5888 might be completed. Intraday bias is will be turned back to the upside for retesting 1.5888.
In the bigger picture, the rebound from 1.5271 was somewhat weaker than expected. EUR/AUD also failed to sustain above 55 day EMA and hints on some underlying bearishness. Though, for now, as long as 1.5271 support holds, medium term rise from 1.3624 (2017 low) is still mildly in favor to extend through 1.6189 high, to 1.6587 key resistance (2015 high). Nevertheless, firm break of 1.5271 will complete a head and shoulder top pattern (ls: 1.5770, h: 1.6189, rs: 1.5888). That would indicate medium term reversal and turn outlook bearish.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8911; (P) 0.8951; (R1) 0.8951;
Consolidation from 0.9030 is still in progress and intraday bias in EUR/GBP remains neutral. While deeper pull back cannot be ruled out, we’d expect downside to be contained by 0.8854 support to bring another rally. Firm break of 61.8% retracement of 0.9305 to 0.8620 at 0.9043 will pave the way to retest 0.9305 key resistance. However, sustained break of 0.8854 will indicate near term reversal and turn outlook bearish.
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.
