USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3120; (P) 1.3145; (R1) 1.3184;
USD/CAD’s rise from 1.2781 is still in progress and edges higher today. While upside momentum is diminishing, current rally is still expected to continue to 1.3225 resistance. Decisive break there will confirm that whole choppy decline from 1.3385 has completed. And in that case, further rally should be seen to retest 1.3385. On the downside, however, break of 1.3068 support will mix up the outlook again and turn bias back to the downside.
In the bigger picture, current development revives the case that corrective fall from 1.3385 has completed at 1.2781 already. And whole up trend from 1.2061 (2016 low) is ready to resume. Break of 1.3385 will target 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. This will now be the favored case as long as 1.2781 support holds.
EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1386; (P) 1.1402; (R1) 1.1425;
EUR/CHF is staying in consolidation from 1.1343 and intraday bias remains neutral. With 1.1429 minor resistance intact, further decline is still expected. As noted before, corrective rise from 1.1173 could have completed at 1.1501 already. Below 1.1343 will target 1.1154/98 key support zone again. At this point, we’d still expect this key support zone to hold. On the upside, above 1.1429 minor resistance will turn focus back to 1.1501 first. But still, break there is needed to confirm rally resumption. Otherwise, risk will stay on the downside even in case of strong recovery.
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. This cluster level is in proximity to long term channel support (now at 1.1243) too. 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.
