USDCAD and USDCNH: USDCAD continues to slide to a new low
- This week, the USDCAD has consistently been in a bearish consolidation
- During the Asian session, USDCNH managed to stabilize above the 7.12500 level
USDCAD chart analysis
This week, the USDCAD has consistently been in a bearish consolidation. In today’s EU trading session, a new weekly low was formed at the 1.35716 level. After that, we saw an attempt to recover to the daily open price of 1.35940. We have resistance here for now and need a stronger impulse to move us above. If we were to succeed, the pair would have the opportunity to start further growth on the bullish side.
Potential higher targets are the 1.35900 and 1.36000 levels. If we break 1.36000, we could get support from the EMA 50 moving average. For a bearish option, we need a negative consolidation and pullback to the 1.35700 level. That move would see USDCAD retest this week’s support. Failure to hold above will push us to a new low. Potential lower targets are 1.35600 and 1.35500.
USDCNH chart analysis
During the Asian session, USDCNH managed to stabilize above the 7.12500 level. This triggered a bullish consolidation and a jump to the daily high at the 7.14400 level. Meanwhile, we received support from the EMA 50 moving average, which added to the bullish momentum. Potential higher targets are 7.14500 and 7.15000 levels. The pair could have additional resistance in the EMA 200 moving average in the zone of 7.15000 levels.
For a bearish option, USDCNH would have to initiate a bearish consolidation first. With the descent below the 7.13000 level, we fall to the negative side below the daily open price and the EMA 50 moving average. With that move, the bearish momentum will increase, and we will have to start retreating to lower levels. Potential lower targets are 7.12500 and 7.12000 levels.
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