EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8847; (P) 0.8872; (R1) 0.8894;
Intraday bias in EUR/GBP remains on the downside with 0.8896 minor resistance intact. Fall from 0.8967 should target 0.8871 support first. 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) 1.5631; (P) 1.5658; (R1) 1.5693;
Intraday bias in EUR/AUD remains on the downside with focus on 1.5626 support. Decisive break there extend the decline from 1.5976 to 61.8% retracement of 1.5153 to 1.5976 at 1.5467 and below. On the upside, above 1.5787 minor resistance will turn bias back to the upside for retesting 1.5976 high instead.
In the bigger picture, change of medium term reversal is increasing with EUR/AUD just missing double projection target. They are 61.8% projection of 1.4421 to 1.5770 from 1.5153 at 1.5987, and 100% projection of 1.3624 to 1.5226 from 1.4421at 1.6023. Also, bearish pergence condition remains in daily MACD. Break of 1.5626 support will add to this bearish case and target 1.5153 key support for confirmation. Nonetheless, before that happens, as long as 1.5153 support holds, medium term rise from 1.3624 could still extend to retest 1.6587 high.