Daily Currency Outlook: EUR/AUD And EUR/GBP: January 2, 2019
Action Forex | Jan 02, 2019 04:01AM ET
Daily Pivots: (S1) 1.6123; (P) 1.6291; (R1) 1.6423;
EUR/AUD’s rally extends after a brief retreat and reaches as high as 1.6348 so far. The intraday bias stays on the upside for the 1.6357 high. At this point, we’d be cautious on topping around there to bring pull back. On the downside, a break of 1.6162 will turn bias to the downside for the pullback. Meanwhile, a sustained break of 1.6357 will confirm an uptrend resistance for next key resistance at 1.6587.
In the bigger picture, there is no change in the view that the 1.6357 is a medium-term top. But the strong rebound ahead of the 1.5271 cluster support (38.2% retracement of 1.3624 to 1.6357 at 1.5313) suggests price actions from 1.6357 are developing into sideways consolidation, rather than a deep correction. The range of 1.5271/6357 is likely to set for the consolidation. We don’t expect a break of the range any time soon. A A decisive break of 1.6357 will resume the larger uptrend from the 1.3624 (2017 low) to the 1.6587 (2015 high).
Get The News You Want
Daily Pivots: (S1) 125.24; (P) 126.15; (R1) 126.74;
EUR/JPY’s fall resumed by taking out 125.52 and reaches as low as 125.16 so far. The intraday bias is back on the downside. The current decline from 133.12 should target the 124.08/89 support zone next. On the upside, break of the 127.09 resistance is needed to indicate short term bottoming. Otherwise, a near-term outlook will remain bearish even in case of recovery.
In the bigger picture, with the current decline, the focus would be back on the 124.08 key resistance turn supported holds. A decisive break of 124.08 will argue that such a rise from 109.03 (2016 low) has completed and turned the outlook bearish. In that case, a deeper fall would be seen to a 61.8% retracement of 109.03 to 137.49 at 119.90. Meanwhile, strong rebound from 124.08, followed by a break of 129.25 resistance will retain medium term bullishness. Rise 109.03 could still extend through 137.49 resistance in that case.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.