USD/CAD Daily Outlook
Daily Pivots: (S1) 1.2808; (P) 1.2863; (R1) 1.2941;
Intraday bias in USD/CAD remains neutral as it’s staying in range of 1.2728/2996. For now, we’re viewing price actions from 1.3124 as a corrective move that could be completed at 1.2526 already. Break of 1.2996 will turn bias to the upside and extend the rise from 1.2526 to 1.3124 key resistance next. However, break of 1.2728 will dampen this bullish view and bring deeper fall back to 1.2526 and possibly below.
In the bigger picture, we’re favoring the case that that rebound from 1.2061 has not completed yet. Focus is back on 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Sustained trading above there will confirm medium term bullish reversal. That is, down trend from 1.4689 has completed at 1.2061 already. In that case, next target will be 61.8% retracement at 1.3685. However, break of 1.2526 support will dampen this bullish view again. And, focus will be back on 1.2061 key support level, which is close to 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048.
AUD/USD Daily Outlook
Daily Pivots: (S1) 0.7489; (P) 0.7519; (R1) 0.7540;
Intraday bias in AUD/USD remains neutral as this point as range trading continues above 0.7411. Stronger rebound cannot be ruled out. But upside should be limited by 38.2% retracement of 0.8135 to 0.7144 at 0.7688 to bring decline resumption eventually. On the downside, break of 0.7411 will resume the fall from 0.8135 and target cluster support at 0.7328 (61.8% retracement of 0.6826 to 0.8135 at 0.7326).
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move. 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.
