USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3077; (P) 1.3103; (R1) 1.3127;
USD/CAD lost some upside momentum as seen in 4 hour MACD. But for now, as long s 1.3027 minor support intact, further rise is expected for 1.3225 resistance. Decisive break there will confirm that corrective decline from 1.3385 has completed at 1.2781. In that case, retest of 1.3385 high should be seen next. On the downside, however, break of 1.3027 minor support will suggests rejection from channel resistance. Intraday bias will be turned back to the downside for 1.2916 and below.
In the bigger picture, current development argues that choppy corrective fall from 1.3385 has completed at 1.2781 already. And that in turns suggests that the up trend from 1.2061 is still in progress. Decisive break of 1.3385 will pave the way to 61.8% retracement of 1.4689 to 1.2061 at 1.3685. On the downside, though, break of 1.2916 support will likely extend the fall from 1.3385 to 61.8% retracement of 1.2061 to 1.3385 at 1.2567 before completion.
USD/JPY Daily Outlook
Daily Pivots: (S1) 112.49; (P) 112.68; (R1) 113.02;
USD/JPY lost momentum after hitting 112.88 and intraday bias is turned neutral again. Further rise cannot be ruled out yet. But based on the corrective structure, upside should be limited by 61.8% retracement of 114.54 to 111.62 at 113.42. On the downside, below 111.94 minor support will turn bias to the downside to 111.62 low first. Break will resume the corrective fall from 114.54 to 38.2% retracement of 104.62 to 114.54 at 110.75. We’ll look for bottoming signal above 109.76 key support in that case.
In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.76 support holds. However, decisive break of 109.76 will dampen this bullish view and turns outlook mixed again.
