Daily Currency Outlook: EUR/GBP And EUR/AUD : May 23,2018

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8756; (P) 0.8773; (R1) 0.8789;

Intraday bias in EUR/GBP remains neutral with mixed near term outlook. On the downside, break of 0.8679 support should confirm completion of the rebound form 0.8620. And intraday bias will be turned back to the downside for this support. Whole decline from 0.9305 will likely be resuming too. On the upside, above 0.8844 will resume the rebound from 0.8620 and target 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963).

EUR/GBP 4 Hour Chart

In the bigger picture, for now, the decline from 0.9305 is seen as a leg inside the long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we’d be cautious on strong resistance by 0.9304/5 to limit upside. Meanwhile, in another decline attempt, 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/GBP Daily Chart

EUR/AUD Daily Outlook

Daily Pivots: (S1) 1.5498; (P) 1.5535; (R1) 1.5582;

EUR/AUD’s recovery and break of 1.5593 minor resistance suggests temporary bottoming at 1.5487. Intraday bias is turned neutral for consolidations first. Upside of rebound should be limited well below 1.5773 support turned resistance to bring another fall. As noted before, prior break of 1.5621 support is taken as an indication of medium term reversal. Below 1.5487 will target 1.5153 key support next.

EUR/AUD 4 Hour Chart

In the bigger picture, rally from 1.3624 (2017 low) should have completed at 1.6189 already, ahead of 1.6587 key resistance (2015 high). 1.6189 is seen as a medium term top. Deeper fall would be seen to 38.2% retracement of 1.3624 to 1.6189 at 1.5209 first. Decisive break there will pave the way to 61.8% retracement at 1.4604. In that case, we’ll look for bottoming again below 1.4604. On the upside, break of 55 day EMA (now at 1.5849) is needed to indicate completion of the fall from 1.6189. Otherwise, further fall is expected in medium term, even in case of strong rebound.

EUR/AUD Daily Chart

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