EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5909; (P) 1.5967; (R1) 1.6036;
EUR/AUD’s rally is still in progress and reaches as high as 1.6036 so far. Intraday bias remains on the upside for 61.8% projection of 1.5130 to 1.5976 from 1.5621 at 1.6130 first. Break there will target 100% projection at 1.6444 next. On the downside, below 1.5896 minor support will turn intraday bias neutral first. But retreat should be contained above 1.5621 support to bring another rally.
In the bigger picture, current development suggests that rise from 1.3624 is not completed yet. And it’s still in progress for 1.6587 key resistance level. We’d be cautious on strong resistance from there to limit upside, on bearish divergence condition in daily MACD. But for now, break of 1.5153 support is needed to indicate medium term reversal. Otherwise, outlook will stays bullish even in case of deep pull back.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8754; (P) 0.8785; (R1) 0.8825;
Intraday bias in EUR/GBP remains on the downside with 0.8815 minor resistance intact. Fall from 0.8967 is expected to extend to retest 0.8686 low. We’d be cautious on strong support from there to bring another rebound. But decisive break of 0.8686 will resume whole fall from 0.9305 and target 0.8303 key support next. On the upside, above 0.8815 minor resistance will turn bias neutral and bring consolidation first, before staging another fall.
In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of deeper fall. And in that case, EUR/GBP could have a retest on 0.8303. But we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
