EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.9035; (P) 0.9051; (R1) 0.9074;
EUR/GBP’s rally extends to as high as 0.9073 so far today. Intraday bias remains on the upside for the moment. Sustained trading above 61.8% retracement of 0.9305 to 0.8620 at 0.9043 will pave the way to retest 0.9305 key resistance. On the downside, below 0.9033 minor support will turn bias neutral and bring consolidations. But near term outlook will stay bullish as long as 0.8895 support holds.
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.
EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5854; (P) 1.5881; (R1) 1.5923;
Intraday bias in EUR/AUD remains neutral as consolidation from 1.5945 temporary top is in progress. Another retreat could be seen but downside should be contained by 4 hour 55 EMA (now at 1.5791) to bring rise resumption. Above 1.5945 will target 61.8% projection of 1.5271 to 1.5886 from 1.5601 at 1.5981 first. Break will target 100% projection at 1.6216, which is close to 1.6189 high.
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.