EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1682; (P) 1.1711 (R1) 1.1758;
No change in EUR/USD’s outlook as it’s bounded in consolidation from 1.1509. Intraday bias remains neutral first and more sideway trading could be seen. In case of stronger recovery, upside should be limited by 1.1851 resistance to bring fall resumption eventually. On the downside , firm break of 1.1507 will resume larger down trend through 50% retracement of 1.0339 to 1.2555 at 1.1447.
In the bigger picture, 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/CHF Daily Outlook
Daily Pivots: (S1) 0.9899; (P) 0.9925; (R1) 0.9942;
USD/CHF is staying neutral as it’s bounded in tight range of 0.9900/9957. With 0.9957 minor resistance intact, deeper decline remains mildly in favor. On the downside, break of 0.9900 will target 0.9856 support. Break there will pave the way to key support level at 0.9787. On the upside, above 0.9957 minor resistance will turn bias back to the upside for retesting 1.0067.
In the bigger picture, as long as 0.9787 support holds, we’re still favoring the bullish case. That is, rise fro 0.9787 is resuming the whole up trend from 0.9186 and should target 1.0342 key resistance on resumption. However, break of 0.9787 will indicate medium term reversal and turn outlook bearish.
