EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1483; (P) 1.1515; (R1) 1.1550;
EUR/USD’s break of 1.1549 minor resistance indicates short term bottoming at 1.1431. Intraday bias is back on the upside for further rebound, to 55 day EMA (now at 1.1617) and possibly above. But upside should be limited by 1.17799/1814 resistance zone to bring down trend resumption finally. On the downside, below 1.1431 will resume the fall from 1.1814 to retest 1.1300 low.
In the bigger picture, corrective pattern from 1.1300 could have completed at 1.1814 after hitting 38.2% retracement of 1.2555 to 1.1300 at 1.1779. Decisive break of 1.1300 will resume the down trend from 1.2555 to 61.8% retracement of 1.0339 (2017 low) to 1.2555 at 1.1186 next. Sustained break there will pave the way to retest 1.0339. On the upside, break of 1.1814 will delay the bearish case and extend the correction from 1.1300 with another rise before completion.
USD/CAD Daily Outlook
Daily Pivots: (S1) 1.2972; (P) 1.3022; (R1) 1.3116;
USD/CAD’s rebound from 1.2781 extends to as high as 1.3068 so far. Focus is now on 1.3081 resistance. Decisive break there will be the first sign of completion of whole choppy fall from 1.3385. In that case, near term outlook will be turned bullish for 1.3225 resistance for confirmation. On the downside, below 1.2886 minor support will turn bias to the downside for 1.2781 first.
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.
