USD/CAD Daily Outlook
Daily Pivots: (S1) 1.2922; (P) 1.2963; (R1) 1.2991;
Outlook in USD/CAD remains unchanged. Even though USD/CAD’s rebound from 1.2781 was strong, it’s limited well below 1.3081 resistance. Such rebound is still seen as a correction and larger fall from 1.3385 is in progress. On the downside, below 1.2886 minor support will turn bias to the downside for 1.2781 first. Break of 1.2781 will extend whole decline from 1.3385 to next fibonacci level at 1.2567, which is close to 1.2526 support. However, break of 1.3081 will turn outlook bullish for 1.3225 resistance.
In the bigger picture, corrective rebound from 1.2061 could have completed at 1.3385 already. Deeper fall is mildly in favor to 61.8% retracement of 1.2061 to 1.3385 at 1.2567, which is close to 1.2526 support. For now, we’re not seeing fall from 1.3385 as resuming larger down trend from 1.4689 (2015 high) yet. Thus, we’ll look for bottoming signal again below 1.2567 . On the upside, though, break of 1.3081 resistance will argue that the pull back from 1.3385 is completed and rise from 1.2061 is resuming for another high above 1.3385.
EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1372; (P) 1.1395; (R1) 1.1420;
Intraday bias in EUR/CHF remains neutral as it’s staying in tight range below 1.1452 resistance. On the downside, break of 1.1361 minor support will suggest rejection by 1.1452 resistance. Intraday bias will then be turned back to the downsides for retesting 1.1154/98. On the upside, decisive break of 1.1452 resistance should confirm bullish reversal, after drawing strong support from 1.1154/98 zone. In that case, outlook will be turned bullish for 1.1713 resistance next.
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 1.1234) 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.
