Daily Currency Outlook: EUR/AUD And EUR/GBP : June 20,2018
ActionForex | Jun 20, 2018 07:52AM ET
Daily Pivots: (S1) 1.5635; (P) 1.5695; (R1) 1.5759;
EUR/AUD’s rebound stalled at 1.5750, below 1.5773 key support turned resistance. Intraday bias is turned neutral first. ON the downside, break of 1.5601 minor support will turn bias to the downside for 1.5425. Break there will confirm completion of rebound from 1.5271 and target this low again. Meanwhile, sustained break of 1.5773 will indicate that whole decline from 1.6189 has completed with three waves down to 1.5271 already. And retest of 1.6189 should be seen next.
In the bigger picture, focus is back on 1.5773 support turned resistance with the current strong rebound. Firm break there will argue that medium term rise from 1.3624 (2017 low) is not completed yet. Further break of 1.6189 will target 1.6587 key resistance (2015 high). Though, rejection by 1.5773 will revive the case of bearish trend reversal and target 61.8% retracement of 1.3624 to 1.6189 at 1.4604.
Daily Pivots: (S1) 0.8764; (P) 0.8782; (R1) 0.8811;
No change in EUR/GBP’s outlook as range trading continues inside 0.8693/8844. Intraday bias remains neutral. With 0.8693 minor support intact, we’d favor another rise. On the upside, break of 0.8844 will resume the rebound from 0.8620 for 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963). However, break of 0.8693 will bring deeper fall back to retest 0.8620 low.
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.
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