EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1240; (P) 1.1268; (R1) 1.1318;
EUR/USD recovers after hitting 1.1215 and breached 1.1313 minor resistance. A temporary low is in place and intraday bias is turned neutral for consolidation. But upside of recovery should below limited below 1.1499 resistance to bring fall resumption . Break of 1.1214 will target 1.1186 fibonacci level first. Break will target 61.8% projection of 1.2555 to 1.1300 from 1.1814 at 1.1038 next.
In the bigger picture, down trend from 1.2555 medium term top has just resumed and should target 61.8% retracement of 1.0339 (2017 low) to 1.2555 at 1.1186 next. Sustained break there will pave the way to retest 1.0339. On the upside, break of 1.1814 resistance is now needed to confirm medium term bottoming. Otherwise, outlook will stay bearish in case of recovery.
USD/CHF Daily Outlook
Daily Pivots: (S1) 1.0050; (P) 1.0089; (R1) 1.0110;
USD/CHF retreated after forming a temporary top at 1.0128. Intraday bias is turned neutral for consolidation. Another rally is expected as long as 0.9952 support holds. On the upside, break of 1.0128 would resume larger rise from 0.9186 and target 1.0342 key resistance. However, firm break of 0.9952 will indicate short term topping and bring deeper fall.
In the bigger picture, the pullback from 1.0067 has completed at 0.9541 already. And rise from 0.9186 is likely resuming. Firm break of 1.0067 will pave the way to retest 1.0342 key resistance. We’d be cautious on strong resistance from there to limit upside to bring another medium term fall to extend long term range trading. However, firm break of 0.9848 near term support will dampen this view and bring deeper decline back to 0.9541 support and possibly below.
