USDCAD and USDCNH: USDCAD is under heavy pressure at 1.3700
- During this morning’s Asian trading session, USDCAD initiated a bearish consolidation from the 1.37200 level
- Yesterday, USDCNH retreated to 7.13046, to a new weekly low
USDCAD chart analysis
During this morning’s Asian trading session, USDCAD initiated a bearish consolidation from the 1.37200 level. In the EU session, the pair continued the previous trend and is now at the 1.37000 level. Yesterday, we also had a bearish drop to the 1.36890 level, and today, we could visit it again. Pressure on the dollar continues to build, and that is why we are seeing a pullback. Potential lower targets are the 1.36800 and 1.36700 levels.
For a bullish option, USDCAD needs to stabilize above the 1.37200 level. After that, we expect to see the initiation of a bullish consolidation and a rise above the 1.37300 level. Thus, we return above the weekly open price to the positive side, reinforcing optimism for continued recovery. Potential higher targets are 1.37400 and 1.37500 levels.
USDCNH chart analysis
Yesterday, USDCNH retreated to 7.13046, to a new weekly low. After that, the pair managed to stabilize and start a recovery. During this morning’s Asian trading session, a bullish consolidation and growth up to the 7.16250 level was initiated. We currently have resistance at that level and are pulling back slightly to the 7.15980 level. Bullish momentum prevails today, and it could dominate until the end of the day.
Potential higher targets are 7.16500 and 7.17000 levels. The EMA 200 moving average is waiting for us in the 7.17000 zone. For a bearish option, we need a negative consolidation and a drop below the 7.15500 level. With that move, we fall below the EMA 50 moving average and lose its support. Potential lower targets are 7.15000 and 7.14500 levels.
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