USD/CHF Daily Outlook
Daily Pivots: (S1) 1.0018; (P) 1.0036; (R1) 1.0070;
Despite diminishing upside momentum, intraday bias in USD/CHF stays on the upside with 0.9982 minor support holds. Current rise should extend to 1.0342 key resistance next. On the downside, though, below 0.9982 minor support will indicate short term topping, on bearish divergence condition in 4 hour MACD. And, in that case, deeper retreat could be seen, possibly to trend line support (now at 0.9748) before staging another rally.
In the bigger picture, medium term decline from 1.0342 has completed with three waves down to 0.9186. Rise from there is currently viewed as a leg inside the long term range pattern. Hence, while further rally would be seen, we’d be cautious on strong resistance from 1.0342 to limit upside. For now, further rise is expected as long as 0.9648 resistance turned support holds, even in case of pull back.
USD/CAD Daily Outlook
Daily Pivots: (S1) 1.2794; (P) 1.2885; (R1) 1.2944;
Intraday bias in USD/CAD remains neutral at this point. As long as 1.2802 minor support holds, further rise is expected. Above 1.2996 will target 1.3124 resistance next. Decisive break there will extend larger rebound from 1.2061. However, break of 1.2802 will at least delay the bullish case, and turn bias back to the downside for 55 day EMA (now at 1.2780) and below.
In the bigger picture, current development suggests that rebound from 1.2061 has not completed yet. Focus is back on 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Sustained trading above there will confirm medium term bullish reversal. That is, down trend from 1.4689 has completed at 1.2061 already. In that case, next target will be 61.8% retracement at 1.3685.
