USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9967; (P) 1.0001; (R1) 1.0025;
USD/CHF cannot break through 1.0067 resistance and retreated. Intraday bias is turned neutral again. On the upside, break of 1.0067 will resume the larger rise from 0.9186. USD/CHF should then target 61.8% projection of 0.9186 to 1.0056 from 0.9787 at 1.0325, which is close to 1.0342 key resistance. However, break of 0.9926 will dampen the bullish view again.
In the bigger picture, rise from 0.9186 is seen as a leg inside the long term range pattern. After drawing support from 55 day EMA, it’s now resuming for 1.0342 key resistance. For now, we’d still cautious on strong resistance from there to limit upside. Meanwhile, break of 0.9787 support is needed to signal completion of the rise. Otherwise, outlook will remain bullish even in case of deep pull back.
GBP/USD Daily Outlook
Daily Pivots: (S1) 1.3009; (P) 1.3072; (R1) 1.3135;
Intraday bas in GBP/USD remains on the downside with 1.3116 minor resistance intact. Current fall from 1.4376 should extend to 1.2874 fibonacci level next. Sustained break there will carry larger bearish implications. On the upside, above 1.3116 minor resistance will turn intraday bias neutral and bring consolidations first. But recovery should be limited well below 1.3362 resistance to bring fall resumption.
In the bigger picture, whole medium term rebound from 1.1946 (2016 low) should have completed at 1.4376 already, after rejection from 55 month EMA (now at 1.4179). Fall from 1.4376 should extend to 61.8% retracement of 1.1946 (2016 low) to 1.4376 at 1.2874 next. Decisive break of 1.2874 will raise the chance of long term down trend resumption through 1.1946 low. On the upside, break of 1.3471 resistance is needed to be the first indication of medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.
