USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3030; (P) 1.3083; (R1) 1.3111;
Intraday bias in USD/CAD remains neutral for the moment. With 1.3035 minor support intact, we’re favoring the bullish case. That is, correction from 1.3385 should have completed with three waves down to 1.2961. Above 1.3170 will target 1.3289 resistance first. Break there will resume larger rise from 1.2061 through 1.3385 high. On the downside, though, break of 1.3035 minor support will dampen this bullish view and turn focus back to 1.2961 low.
In the bigger picture, as long as channel support (now at 1.2950) holds, we’re holding to the bullish view. That is, fall from 1.4689 (2015 high) has completed at 1.2061, ahead of 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen for 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above. However, sustained break of the channel support will argue that rise from 1.2061 has completed and will bring deeper fall to 1.2526 support to confirm.
USD/JPY Daily Outlook
Daily Pivots: (S1) 110.72; (P) 111.02; (R1) 111.44;
The break of 111.17 minor resistance suggests that correction from 113.17 has completed with three waves down to 110.10. Intraday bias is back on the upside for 112.14 resistance first. Break there will bring retest of 113.17 high. In case of another fall, we’d continue to expect strong support from 38.2% retracement of 104.62 to 113.17 at 109.90 to contain downside and bring rebound.
In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.36 support holds.
