USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3023; (P) 1.3061; (R1) 1.3106;
USD/CAD surges to as high as 1.3141 so far today. The break of 1.3132 resistance indicates resumption of rise from 1.2781. More importantly, the break of near term channel resistance argues that the corrective fall from 1.3385 has completed. Intraday bias is now on the upside for 1.3225 resistance. Firm break there will confirm this bullish case and target 1.3385 high and above. On the downside, break of 1.2969 support is needed to indicate completion of the rebound. Otherwise, outlook will stay cautiously bullish in case of retreat.
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 resume 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.
USD/JPY Daily Outlook
Daily Pivots: (S1) 111.92; (P) 112.30; (R1) 112.77;
Intraday bias in USD/JPY remains neutral at this point. On the upside, break of 112.88 resistance will resume the rebound from 111.62. But upside should be limited by 61.8% retracement of 114.54 to 111.62 at 113.42 to bring another decline. On the downside, break of 111.82 will likely resume the fall from 114.54 to 38.2% retracement of 104.62 to 114.54 at 110.75. As the fall from 114.54 is viewed as part of medium term correction, we’ll look for bottoming signal above 109.76 key support.
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.
