The Brexit Developments Continue. Unemployment Increase in Australia

  • To leave without a deal
  • To hold a General election
  • Vote of no confidence
  • A new referendum
  • Or to cancel Brexit

EUR/GBP — Technical Outlook

A further push higher might overshoot the yesterday’s high and test the 0.8740 barrier, which previously acted as a good area of support on February 8 th, 13 th, 17 thand 18 th. This time the area could take the role of resistance and the rate might get a hold-up around there, or even retrace back down a bit. The pair could slide back to the upside support line for a quick test, but if EUR/GBP fails to break below it, this is when the bulls might take advantage of the lower rate and push it up again. This is when the pair could try and bypass the 0.8740 obstacle, potentially targeting the 0.8763 zone, marked by the high of February 19 th.

AUD/USD — Technical Outlook

On the other hand, if AUD/USD suddenly breaks that downside resistance line and remains trading above it, this could increase the pair’s chances to continue moving in the upwards direction. But, for a better confirmation, we would like to see a clear break above the 0.6962 barrier, marked by the lows of May 6 thand 9 th. Such a move might open the door to a large move higher, where the next possible resistance area could be seen around the 0.6985 obstacle, a break of which might send the pair further in the upwards direction. This is when we will target the area around the 0.7025 level, marked near the high of May 8 th.

As for the rest of today’s events

During the early hours of the Asian morning, Australia released its employment figures for the month of April. The expectation was that the number for the amount of unemployed people could be at 5.0%, but it came out with a slight disappointment, at 5.2%. The AUD did react to the news with a push lower, but then quickly after that it recovered some of those losses.

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