USD/CAD Daily Outlook
Daily Pivots: (S1) 1.2834; (P) 1.2860; (R1) 1.2899;
Intraday bias in USD/CAD remains neutral for consolidation below 1.2896 temporary top. Deeper retreat could be seen but downside should be contained by 1.2748 minor support to bring another rise. Above 1.2896 will turn bias back to the upside for 1.3124 resistance next. However, firm break of 1.2748 will turn focus back to 1.2526 support instead.
In the bigger picture, current development suggests 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.
EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1950; (P) 1.1970; (R1) 1.1991;
Intraday bias in EUR/CHF remains neutral as consolidation from 1.2004 temporary top extends. Further rise is expected, though, as long as 1.1888 minor support holds. On the upside, decisive break of 1.2 will pave the way to 61.8% projection of 1.0629 to 1.1832 from 1.1445 at 1.2188. However, considering bearish divergence condition in 4 hour MACD, break of 1.1888 will indicate short term topping. In that case, deeper pull back would be seen back to 1.1445/1832 support zone.
In the bigger picture, long term up trend in EUR/CHF is still in progress. Prior SNB imposed floor at 1.2003 was already met but there is no sign of reversal yet. As long as 1.1445 support holds, we’d expect the up trend to extend to 2013 high at 1.2649 next.
