USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9952; (P) 0.9976; (R1) 1.0017;
USD/CHF is losing some upside momentum as seen in 4 hour MACD, But intraday bias remains on the upside for 1.0037 resistance. Decisive break there will extend the whole rally from 0.9186 towards 1.0342 key resistance On the downside, though, below 0.9919 will indicate short term topping. And, in that case, lengthier consolidation would be seen before 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/JPY Daily Outlook
Daily Pivots: (S1) 109.61; (P) 109.82; (R1) 110.05;
USD/JPY is losing upside momentum as seen in 4 hour MACD. But with 109.50 minor support intact, further rise is expected. Current rally from 104.62 should target 61.8% retracement of 114.73 to 104.62 at 110.86 next. Nonetheless, considering bearish divergence condition in 4 hour MACD, break of 109.50 will indicate short term topping. And lengthier consolidation would be seen before staging another rally.
In the bigger picture, break of 108.12 support turned resistance now suggests that corrective fall from 118.65 (2016 high) has completed with three waves down to 104.62. And, rise from 98.97 (2016 low) could be resuming. Focus is back on 114.73 resistance and break there will pave the way to 118.65 and above. This will now be the preferred case as long as USD/JPY stays above 55 day EMA (now at 107.78).
