EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1505; (P) 1.1590 (R1) 1.1638;
Intraday bias in EUR/USD remains mildly on the downside for 1.1507 low. Break will resume whole fall from 1.2555 through 50% retracement of 1.0339 to 1.2555 at 1.1447 to 61.8% retracement at 1.1186. On the upside, above 1.1720 will bring another recovery. But still, upside should be limited by 1.1851 resistance to bring fall resumption eventually.
In the bigger picture, current development suggests that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. And, a medium term top was formed at 1.2555 already. Decline from there should extend further to 61.8% retracement of 1.0339 to 1.2555 at 1.1186 and below. For now, even in case of rebound, we won’t consider the fall from 1.2555 as finished as long as 1.1995 resistance holds.
USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3283; (P) 1.3334; (R1) 1.3394;
Despite breaching 1.3381 to 1.3385, USD/CAD quickly retreated back to established range. Intraday bias remains neutral as consolidation could extend. In case of deeper pull back, downside should be contained above 1.3067 resistance turned support to bring rise resumption. On the upside, firm break of 1.3381 will resume recent rally for 1.3685 medium term fibonacci level next.
In the bigger picture, current development solidify the view of bullish trend reversal. That is fall from 1.4689 (2015 high) has completed at 1.2061, ahead of 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen for 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above. This will now be the preferred case as long as 1.2916 resistance turned support holds, even in case of deep pull back.
