GBP/AUD finally broke out from medium term consolidation and resume down trend this week. EUR/AUD is also following and look ready for down trend resumption too. The development came as commodity currencies generally responded better to receding expectation of another 75bps Fed hike, than European majors.
GBP/AUD’s fall is seen as part of the down trend from 1.9218, as well as that from 2.0840 (2020 high). Both near term and medium term bearishness are maintained well with the cross capped by falling 55 day and 55 week EMA. Next target is 61.8% projection of 1.9218 to 1.7171 from 1.7649 at 1.6384.
EUR/AUD also resumed the fall from 1.5396 through 1.4580 support. It’s now targeting 1.4318 low (corresponding to GBP/AUD’s 1.7171 support). Firm break there will resume whole down trend from 1.9799 (2020 high), and target 61.8% projection of 1.9799 to 1.5250 from 1.6434 at 1.3623, which is close to 1.3624 long term support (2017 low).
