EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.6173; (P) 1.6227; (R1) 1.6320;
EUR/AUD rises to as high as 1.6306 so far today. The break of 1.6252 resistance confirmed that pull back from 1.6353 has completed with three waves down to 1.5984. And, larger up trend is ready to resume. Intraday bias is back on the upside for 1.6353 resistance first. Break will confirm this bullish case and target 1.6587 key resistance next. On the downside, below 1.6220 minor support will turn intraday bias neutral and bring retreat. But downside should be contained well above 1.5984 support to bring another rally.
In the bigger picture, up trend from 1.3624 (2017 low) is still in progress. Further rise should be seen to retest 1.6587 (2015 high). Decisive break there will resume the long term rally and target 1.7488 fibonacci level. On the downside, break of 1.5886 resistance turned support is need to be the first sign of medium term reversal. Otherwise, outlook will remain bullish in case of deep pull back.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8828; (P) 0.8852; (R1) 0.8870;
EUR/GBP’s strong break of 0.8847 support invalidated our view. Fall from 0.9097 has resumed and intraday bias is back on the downside for 61.8% retracement of 0.8620 to 0.9097 at 0.8802 first. Sustained break there will target 0.8620 support and possibly below. On the upside, break of 0.8917 resistance is needed to indicate short term bottoming. Otherwise, near term outlook will now remain cautiously bearish.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). At this point, there is no clear sign of range break out yet. And more corrective trading would continue. On the upside, in case of another rise, 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.