EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1625; (P) 1.1685 (R1) 1.1721;
Intraday bias in EUR/USD remains neutral as it’s staying in converging range. On the downside, below 1.1612 will argue that larger fall from 1.2555 is possibly ready to resume. Intraday bias will be turned to the upside for 1.1507 low. Break will confirm and should target 50% retracement of 1.0339 to 1.2555 at 1.1447 and then 61.8% retracement at 1.1186. In case, the consolidation extends, upside should be limited by 1.1851 resistance to bring fall resumption eventually.
In the bigger picture, EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. And, a medium term top was formed at 1.2555 already. Decline from there should extend further to 61.8% retracement of 1.0339 to 1.2555 at 1.1186 and below. For now, even in case of rebound, we won’t consider the fall from 1.2555 as finished as long as 1.1995 resistance holds.
AUD/USD Daily Outlook
Daily Pivots: (S1) 0.7363; (P) 0.7401; (R1) 0.7426;
Intraday bias in AUD/USD stays neutral for the moment. Consolidation pattern from 0.7390 could extend. But even in case of another rise through 0.7483, upside should be limited below 0.7676 resistance to bring larger fall resumption. On the downside, below 0.7359 will target 0.7309 support first. Sustained trading below 0.7328 cluster support (61.8% retracement of 0.6826 to 0.8135 at 0.7326) will extend the fall from 0.8135 to 0.7158 support next.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move that should be completed at 0.8135. Deeper decline would be seen back to retest 0.6826 low. This will now remain the favored case as long as 0.7676 resistance holds.
