Daily Currency Outlook: USD/CAD And USD/JPY : December 06,2018
USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3273; (P) 1.3336; (R1) 1.3420;
Intraday bias in USD/CAD remains on the upside with focus on 1.3385 resistance. Decisive break there will confirm resumption of medium term up trend. Next target is 1.3685 fibonacci level. On the downside, though, break of 1.3160 support will indicate rejection by 1.3385 resistance and turn near term outlook bearish.
In the bigger picture, up trend from 1.2061 (2017 low) is still in progress and decisive break of 1.3385 will pave the way to 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. In case correction from 1.3382 extend with another falling leg, downside should be contained by 50% retracement of 1.2061 to 1.3385 at 1.2723 to bring rebound.
USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9959; (P) 0.9984; (R1) 1.0001;
USD/CHF is still staying in consolidation in range of 0.9908/1.0006. Intraday bias remains neutral first. On the upside, break of 1.0006 will argue that the pull back from 1.0128 has completed. Intraday bias will be turned back to the upside for retesting 1.1028. On the downside, break of 38.2% retracement of 0.9541 to 1.0128 at 0.9904 will resume the fall from 1.0128 to 0.9848 key support level. Break there will indicate near term reversal and target 61.8% at 0.9765.
In the bigger picture, rise from 0.9541 could have topped at 1.0128. But as long as 0.9541 support holds, we’d still expect rise from 0.9186 to resume at a later stage. Break of 1.0128 will target 1.0342 key resistance. However, break of 0.9514 will pave the way back to 0.9186 low.