USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3079; (P) 1.3178; (R1) 1.3233
With 1.3258 minor resistance intact, pull back from 1.3385 short term top could extend lower. But for now, , we’d expect downside to be contained there to bring rebound. On the upside, above 1.3258 minor resistance will bring retest of 1.3385. However, firm break of 1.3067will bring deeper decline to channel support (now at 1.2831).
In the bigger picture, as long as channel support (now at 1.2825) holds, we’ll holding to the bullish view. 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.
AUD/USD Daily Outlook
Daily Pivots: (S1) 0.7358; (P) 0.7384; (R1) 0.7433
AUD/USD faced some resistance from 4 hour 55 EMA and retreats. But it’s staying in range of 0.7322/7443 and intraday bias remains neutral. As noted before, as long as 0.7443 resistance holds, further decline is expected. Sustained break of 0.7328 cluster support (61.8% retracement of 0.6826 to 0.8135 at 0.7326) will target 61.8% projection of 0.8135 to 0.7411 from 0.7676 at 0.7229 next. Though, break of 0.7443 resistance will suggest short term bottoming and bring stronger rebound back towards 0.7676 resistance.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move that should be completed at 0.8135. Deeper decline would be seen back to retest 0.6826 low. This will now remain the favored case as long as 0.7676 resistance holds.
