USDCAD and USDCNH: USDCAD is moving sideways for now
- This week’s movement of USDCAD takes place in the 1.37200-1.37500 range.
- During this morning’s Asian session, USDCNH initiated a bearish consolidation that is still active.
USDCAD chart analysis
This week’s movement of USDCAD takes place in the 1.37200-1.37500 range. Today, our resistance is at the 1.37450 level, and we would have to jump over that level if we plan to start the recovery on the bullish side. By climbing above 1.37500, we will reach a new weekly low, which will strengthen the bullish momentum. Potential higher targets are the 1.37600 and 1.37700 levels.
An additional resistance and obstacle is the EMA 200 at 1.37700. For a bearish option, we need a negative consolidation and a drop to this week’s 1.37200 support zone. With that step, USDCAD will exert new pressure, which could produce a new impulse below to a new lower low. Potential lower targets are 1.37100 and 1.37000 levels. USDCAD could almost break out of this sideways movement, it just needs an impulse to one side.
USDCNH chart analysis
During this morning’s Asian session, USDCNH initiated a bearish consolidation that is still active. After breaking below the 7.17500 level and the weekly open price, the pair continued to retreat to the 7.15100 level. A new weekly low was formed there, but the momentum is very strong and could bring us down to a new lower low. Potential lower targets are the 7.15000 and 7.14000 levels.
For a bullish option, USDCNH would have to stabilize and stop today’s pullback. With the new support level, we can expect the initiation of bullish consolidation and a return to the 7.17500 level. Then, the pair would have to hold there to start growing further bullish with the support of the EMA 50 moving average. Potential higher targets are the 7.19000 and 7.20000 levels.
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