EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.6067; (P) 1.6112; (R1) 1.6181;
Intraday bias in EUR/AUD remains neutral for consolidation below 1.6171 temporary top. Some consolidations would be seen. But retreat should be contained by 1.5886 resistance turned support to bring another rally. On the upside, firm break of 100% projection of 1.5271 to 1.5886 from 1.5601 at 1.6216 will extend the larger up trend to 161.8% projection at 1.6596, which is close to another key resistance level at 1.6587.
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) 0.8982; (P) 0.9009; (R1) 0.9051;
Outlook in EUR/GBP remains bullish as it’s staying in near term rising channel. Intraday bias also remains on the upside for retesting 0.9097 resistance first. Break there will resume larger rally from 0.8620 towards 0.9305 high. On the downside, however, break of 0.8937 support should have near term channel support firmly taken out. And that will indicate completion of rise from 0.8620 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.
