EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8797; (P) 0.8817; (R1) 0.8828;
Intraday bias in EUR/GBP remains on the downside for 0.8771 support. Firm break there will confirm completion of rebound from 0.8686 and target a retest of this low. On the upside, above 0.8896 minor resistance will turn bias neutral first. Further break of 0.8967 will resume the rebound from 0.8686 to 61.8% retracement of 0.9305 to 0.8686 at 0.9069.
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.
EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5816; (P) 1.5876; (R1) 1.5982;
Intraday bias in EUR/AUD remains on the upside for 1.5976 resistance first. Decisive break will resume the up trend from 1.3624 and target 61.8% projection of 1.5130 to 1.5976 from 1.5621 at 1.6130 first. On the downside, below 1.5784 minor support will delay the bullish case and turn intraday bias neutral first.
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.
