EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5667; (P) 1.5745; (R1) 1.5790;
Intraday bias in EUR/AUD remains neutral as pull back from 1.5887 is in progress. Deeper decline cannot be ruled out. But downside should be contained by 1.5596 support to bring rise resumption. On the upside, above 1.5887 will resume the rise from 1.5346 to 1.5984 resistance first. Decisive break there will pave the way to retest 1.6357 high. Nevertheless, break of 1.5596 will indicate completion of the rebound and turn bias back to the downside for retesting 1.5346 low.
In the bigger picture, no change in the view that 1.6357 is a medium term top. But the strong rebound ahead of 1.5271 cluster support (38.2% retracement of 1.3624 to 1.6357 at 1.5313) suggests price actions from 1.6357 are developing into sideway consolidation, rather than a deep correction. The range of 1.5271/6357 is likely set for the consolidation. And we don’t expect a break of the range any time soon. But decisive break of 1.6357 will resume the larger up trend from 1.3624 (2017 low) to 1.6587 (2015 high).
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.9023; (P) 0.9047; (R1) 0.9089;
EUR/GBP lost some upside momentum but with 0.8988 minor support intact, intraday bias stays on the upside for 0.9098 resistance. Decisive break there will extend the rise from 0.8655 to 0.9304 key resistance next. On the downside, below 0.8988 minor support will turn intraday bias neutral and bring some consolidations first, before staying another rally.
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.
