USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3226; (P) 1.3293; (R1) 1.3345;
Upside momentum in USD/CAD remains unconvincing, as seen in the structure of the rise from 1.2781. In case of another rally, we’d be cautious on topping around 1.3385 to bring near term reversal. On the downside, break of 1.3187 support will argue that rise from 1.2781 has completed. And intraday bias would be turned back to the downside for 55 day EMA (now at 1.3127) first. Nevertheless, strong break of 1.3385 will confirm medium term up trend resumption.
In the bigger picture, current development revives the case that corrective fall from 1.3385 has completed at 1.2781 already. And whole up trend from 1.2061 (2016 low) is ready to resume. Break of 1.3385 will target 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. This will now be the favored case as long as 1.2781 support holds.
EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1265; (P) 1.1291; (R1) 1.1321;
Near term outlook EUR/CHF remains mildly bearish as long as 1.1356 resistance holds. Rebound from 1.1173 should have completed already. Choppy decline from 1.1501 would extend to retest 1.1173 low. Nevertheless, break of 1.1356 will turn bias back to the upside for 1.1501 again.
In the bigger picture, price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. This cluster level is in proximity to long term channel support (now at 1.1240) too. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.
