USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3426; (P) 1.3466; (R1) 1.3518;
Intraday bias in USD/CAD remains on the upside. Rise from 1.2781 is part of the up trend from 1.2061 and would target 1.3685 fibonacci level next. On the downside, below 1.3415 minor support will turn intraday bias neutral first and bring consolidations. But retreat should be contained well above 1.3164 support to bring rise resumption.
In the bigger picture, up trend from 1.2061 (2017 low) is still in progress and should target to 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. However, such rise is not clearly impulsive yet. And it could be the second leg of the long term corrective pattern that started at 1.4689. Hence, even in case of further rally, we’d be cautious on loss of momentum and topping above 1.3685. Nevertheless, in any case, outlook will stay bullish as long as channel support (now at 1.2972) holds.
EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1287; (P) 1.1318; (R1) 1.1339;
EUR/CHF lost momentum again after hitting 1.1348 and intraday bias is turned neutral first. At this point, we’re still favoring the case the choppy fall from 1.1501 has completed at 1.1224, on bullish convergence condition in 4 hour MACD. Hence, downside of current retreat should be contain well above 1.1224 to bring another rally. On the upside, break of 1.1348 will target a test on 1.1501 key resistance.
In the bigger picture, price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.
