USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3129; (P) 1.3170; (R1) 1.3245;
Intraday bias in USD/CAD remains on the upside Current rally should target 100% projection of 1.2246 to 1.3124 from 1.2526 at 1.3404 next. On the downside, below 1.3120 minor support will turn intraday bias neutral and bring consolidation first, before staying another rally.
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 1.2526 support holds, even in case of deep pull back.
AUD/USD Daily Outlook
Daily Pivots: (S1) 0.7426; (P) 0.7456; (R1) 0.7474;
Intraday bias in AUD/USD remains on the downside for 0.7411 support. Break will resume larger fall from 0.8135 for 0.7328 cluster support (61.8% retracement of 0.6826 to 0.8135 at 0.7326). On the upside, break of 0.7528 minor resistance is needed to indicate completion of the fall from 0.7676. Otherwise, outlook will remain cautiously bearish in case of recovery.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move. Prior break of 0.7500 key support suggests that such correction is completed at 0.8135. Deeper decline would be seen back to retest 0.6826 low. In case of another rise, we’d expect strong resistance from 38.2% retracement of 1.1079 to 0.6826 at 0.8451 to limit upside to bring long term down trend resumption eventually.
