USD/CHF Daily Outlook
Daily Pivots: (S1) 0.0.9863; (P) 0.9894; (R1) 0.9955;
USD/CHF’s rally is still in progress and intraday bias stays on the upside. Next target is 1.0067 resistance. On the downside, break of 0.9822 support is needed to indicate short term topping. Otherwise, near term outlook will remain bullish in case of retreat.
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In the bigger picture, the pullback from 1.0067 has completed at 0.9541 already. And rise from 0.9186 is likely resuming. Firm break of 1.0067 will pave the way to retest 1.0342 key resistance. We’d be cautious on strong resistance from there to limit upside to bring another medium term fall to extend long term range trading.
GBP/USD Daily Outlook
Daily Pivots: (S1) 1.2897; (P) 1.2960; (R1) 1.3001
GBP/USD’s fall from 1.3297 is still in progress and intraday bias remains on the downside for 1.2784 support. Firm break there will likely resume larger down trend from 1.4376 through 1.2661. On the upside, break of 1.3022 minor resistance will turn intraday bias neutral and bring recovery. But risk will stay on the downside as long as 1.3297 resistance holds.
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 1.4062). The structure and momentum of the fall from 1.4376 argues that it’s resuming long term down trend. And this will be the preferred case as long as 38.2% retracement of 1.4376 to 1.2661 at 1.3316 holds. However, firm break of 1.3316 would bring stronger rebound to 61.8% retracement at 1.3721. And, the eventual depth of the fall from 1.4376, and the chance of hitting 1.1946 low, will depend on the strength of the interim corrective rebound from 1.2661.
