EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1289; (P) 1.1325; (R1) 1.1350;
At this point, further decline is expected in EUR/USD as long as 1.1421 minor resistance holds. Decisive break of 1.1300 key support will resume whole down trend from 1.2555 and target 1.1186 fibonacci level next. On the upside, however, break of 1.1421 resistance will indicate short term bottoming, with bullish convergence condition in 4 hour MACD. Intraday bias will be turned back to the upside for 1.1621 resistance instead.
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/CHF Daily Outlook
Daily Pivots: (S1) 1.0045; (P) 1.0072; (R1) 1.0112;
Intraday bias in USD/CHF remains on the upside for the moment, with focus on 1.0067 key resistance. Sustained break of 1.0067 will confirm resumption of larger rise from 0.9186 and should target 1.0342 key resistance next. However, break of 1.0007 minor support will be the first sign of near term topping. Intraday bias will be turned back to the downside for 0.9848/9954 support zone.
In the bigger picture, the pullback from 1.0067 has completed at 0.9541 already. And rise from 0.9186 is likely resuming. Firm break of 1.0067 will pave the way to retest 1.0342 key resistance. We’d be cautious on strong resistance from there to limit upside to bring another medium term fall to extend long term range trading.
