USD/CAD Daily Outlook
Daily Pivots: (S1) 1.2773; (P) 1.2824; (R1) 1.2867;
Intraday bias in USD/CAD remains on the downside for the moment. Fall from 1.3385 is in progress and would target next fibonacci level at 1.2567, which is close to 1.2526 support. On the upside, above 1.2883 resistance turned support will turn intraday bias neutral first. But break of 1.3081 resistance is needed to indicate near term reversal. Otherwise, outlook will remain bearish even in case of recovery.
In the bigger picture, the firm break of 38.2% retracement of 1.2061 to 1.3385 at 1.2879 key fibonacci level argues that whole choppy rebound from 1.2061 has completed at 1.3385 already. Deeper fall would be seen back to 61.8% retracement at 1.2567, which is close to 1.2526 support and possibly below. For now, we’re not seeing fall from 1.3385 as resuming larger down trend from 1.4689 (2015 high) yet. Thus, we’ll look for bottoming signal again below 1.2567 .
EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1360; (P) 1.1395; (R1) 1.1424;
EUR/CHF retreat sharply again after hitting 1.1427 and intraday bias is turned neutral. On the upside, decisive break of 1.1452 resistance should confirm bullish reversal, after drawing strong support from 1.1154/98 zone. In that case, outlook will be turned bullish for 1.1713 resistance next. However, break of 1.1280 will argue that choppy recovery from 1.1178 has completed and bring retest of 1.1154/98 support zone again.
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 1.1234) 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.
