Daily Currency Outlook: EUR/AUD And EUR/GBP : August 22,2018
ActionForex | Aug 22, 2018 05:15AM ET
Daily Pivots: (S1) 1.5659; (P) 1.5690; (R1) 1.5739
EUR/AUD’s rebound from 1.5578 resumed by taking out 1.5725 resistance and reaches as high as 1.5762 so far. Intraday bias is back on the upside for retesting 1.5888 high. Firm break there will resume larger rise from 1.5271. On the downside, break of 1.5601 support will resume the fall from 1.5888 to 61.8% retracement of 1.5271 to 1.5888 at 1.5507 instead.
In the bigger picture, the rebound from 1.5271 was somewhat weaker than expected. EUR/AUD. But there is no confirmation of completion. Break of 1.5888 will likely target 1.6189 and above to resume the medium term rally from 1.3624 (2017 low). This will be the favored case as long as 1.5271 support holds.
h2 EUR/GBP Daily Outlook/h2
Daily Pivots: (S1) 0.8943; (P) 0.8973; (R1) 0.8997
Intraday bias in EUR/GBP remains neutral at this point. The consolidation from 0.9030 is still in progress. Another fall cannot be ruled out but downside should be contained by 0.8854 support to bring rally resumption. On the upside, firm break of 61.8% retracement of 0.9305 to 0.8620 at 0.9043 will pave the way to retest 0.9305 key resistance. However, sustained break of 0.8854 will indicate near term reversal and turn outlook bearish.
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.
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