USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3220; (P) 1.3301; (R1) 1.3343;
USD/CAD is staying in consolidation below 1.3381 and intraday bias remains neutral. Deeper pull back could be seen to 4 hour 55 EMA (now at 1.3216) and below. But downside should be contained above 1.2948 support to bring another rally. On the upside, firm break of 1.3381 should target 1.3685 medium term fibonacci level next.
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 1.2916 resistance turned support holds, even in case of deep pull back.
AUD/USD Daily Outlook
Daily Pivots: (S1) 0.7391; (P) 0.7418; (R1) 0.7439;
Intraday bias in AUD/USD stays mildly on the upside at this point. Recovery from 0.7345 could extend higher. But upside should be limited below 0.7676 resistance to bring fall resumption. On the downside 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.
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.
