USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3137; (P) 1.3196; (R1) 1.3237;
USD/CAD’s pull back from 1.3264 extends lower today. But it’s, after all, staying above 1.3056 support as well as inside near term channel. Intraday bias remains neutral and another rise remains in favor. On the upside, above 1.3264 will extend the rally from 1.2781 to retest 1.3385 high. However, break of 1.3056 will indicate near term reversal and turn outlook bearish.
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) 1.1361; (P) 1.1392; (R1) 1.1438;
Intraday bias in EUR/CHF remains neutral for the moment. As long as 1.1470 minor resistance holds, another decline is mildly in favor. On the downside, break of 1.1334 will extend the fall from 1.1501 towards 1.1154/98 key support zone. On the upside, break of 1.1470 will turn focus back to 1.1501. Decisive break of 1.1501 will revive the case of bullish reversal.
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.
