USD/CAD Daily Outlook
Daily Pivots: (S1) 1.2808; (P) 1.2834; (R1) 1.2857;
USD/CAD’s rise resumes after brief consolidation and intraday bias remains on the upside. Current rally from 1.2526 should target a test on 1.3124 resistance next. On the downside, below 1.1.2811 minor support will turn intraday bias neutral first. But for now, further rise will be expected as long as 4 hour 55 EMA (now at 1.2719) holds.
In the bigger picture, current development suggests that rebound from 1.2061 has not completed yet. Focus is back on 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Sustained trading above there will confirm medium term bullish reversal. That is, down trend from 1.4689 has completed at 1.2061 already. In that case, next target will be 61.8% retracement at 1.3685.
USD/JPY Daily Outlook
Daily Pivots: (S1) 108.50; (P) 108.85; (R1) 109.15;
With 108.54 minor support intact, intraday bias in USD/JPY remains on the upside for further rise. Current rally from 104.62 should extend to 61.8% retracement of 114.73 to 104.62 at 108.48 9 110.86 next. On the downside, below 108.54 minor support will turn bias neutral and bring consolidation first, before staging another rise.
In the bigger picture, break of 108.12 support turned resistance now suggests that corrective fall from 118.65 (2016 high) has completed with three waves down to 104.62. And, rise from 98.97 (2016 low) could be resuming. Focus is back on 114.73 resistance and break there will pave the way to 118.65 and above. This will now be the preferred case as long as USD/JPY stays above 55 day EMA (now at 107.47).
