Detailed FX Market Outlook and Analysis

Daily Forex Analysis – EUR/AUD – 07-July-2023

Daily Forex Analysis

EUR/AUD Daily Forex Analysis

In today’s daily forex analysis, we’re focusing on the EUR/AUD pair. The pair bounced back after encountering support at 1.6258, yet it remains below the 1.6555 resistance. The intraday outlook stays neutral for now. Provided the 1.6258 support remains intact, we anticipate a further rally. As previously suggested, the correction from 1.6788 should have ended with a three-wave decline to 1.5849. A move above 1.6555 will likely target a retest on the 1.6788 high. However, a solid break below 1.6258 could undermine this perspective and shift the bias towards the downside for the 1.5849 support.

Looking at the bigger picture in our daily analysis, the rally from 1.4284 remains in progress as long as the 38.2% retracement of 1.4284 to 1.6788 at 1.5831 holds. A firm break of 1.6788 would confirm the resumption of the rise. The next target would be the 100% projection of 1.5257 to 1.6788 from 1.5849 at 1.7380. Conversely, if the pair is rejected by the 1.6788 high, the corrective pattern may be extended with another drop. However, as long as the 1.5831 support holds, the outlook remains bullish.

EUR/AUD Daily Analysis Summary

To summarize our EUR/AUD intraday analysis, while the intraday bias remains neutral, the potential for a further rally exists if the 1.6258 support remains unbroken. Should the pair move above the 1.6555 resistance, a retest of the 1.6788 high would likely be the next target. The outlook will stay bullish provided the 1.5831 support holds.

Key Points

  • The EUR/AUD pair’s intraday bias stays neutral, with a potential for further rally if 1.6258 support remains intact.
  • A move above 1.6555 could target a retest on the 1.6788 high.
  • Despite the potential downward pressure, the long-term outlook remains bullish as long as the 1.5831 support holds.

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