Daily Currency Outlook: EUR/AUD And EUR/GBP : July 5,2018
EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5725; (P) 1.5808; (R1) 1.5868;
EUR/AUD recovers strongly today but stays below 1.5886 resistance. Intraday bias remains neutral for the moment. Outlook is unchanged that another rise is in favor with 1.5696 minor support intact. Above 1.5886 will target 1.6139/89 resistance zone. However, as the rebound from 1.5271 is not clearly impulsive yet and momentum isn’t too convincing. Break of 1.5695 minor support could be an early sign of near term topping. In such case, focus will be back on 1.5425 support..
In the bigger picture, current development suggests that fall from 1.6189 is a corrective move and has completed at 1.5217 already. Key support levels of 1.5153 and 38.2% retracement of 1.3624 to 1.6189 at 1.5209 were defended. And medium term rise from 1.3624 (2017 low) is not completed yet. Break of 1.6189 will target 1.6587 key resistance (2015 high).
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8793; (P) 0.8817; (R1) 0.8835;
EUR/GBP recovers ahead of 0.8796 minor support and intraday bias remains neutral. Near term outlook stays cautiously bullish with 0.8796 intact. On the upside, break of 0.8890 will resume the rebound from 0.8620 and target 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963). However, break of 0.8796 will be the first sign that whole rebound from 0.8620 is completed. That will bring deeper fall to 0.8724 support for confirmation.
In the bigger picture, EUR/GBP is staying in 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.