USDCAD and USDCNH: The USDCAD is taking a step back
- On Wednesday, USDCAD climbed to a new weekly high at 1.35656
- For the third day in a row USDCNH is in a bearish trend
USDCAD chart analysis
On Wednesday, USDCAD climbed to a new weekly high at 1.35656. After that, there was a sharp pullback all the way to the 1.35000 level. During this morning’s Asian session, the pair managed to maintain itself and has been moving in the 1.35000-1.35100 range since then. We need a stronger impulse in some direction so that we can more easily assess the next trend. For a bullish option, we need an impulse above the 200 EMA and 1.35200 level.
With that, we move to the positive side and get the support of the moving average. Potential higher targets are 1.35300 and 1.35400 levels. We need USDCAD to fall below the 1.35000 level for a bearish option. The pair moves to a new daily low, confirming it is under bearish pressure. Potential lower targets are 1.34900 and 1.34800 levels.
USDCNH chart analysis
For the third day in a row USDCNH is in a bearish trend. A strong bearish consolidation is taking place this morning at the 7.09500 level. After that, we saw a recovery attempt, which was stopped at the 7.10500 level. The pair started this pullback from that level, and now we are putting pressure on this morning’s low. We have a chance to fall to a new low and thereby extend the bearish trend. Potential lower targets are 7.09000 and 7.08500 levels.
For a bullish option, we need a positive consolidation of USDCNH above the 7.10500 level. This would move us away from this morning’s low and to the bullish side. After that, we expect the pair to rise to 7.11500 and test the daily open price and EMA 200 moving average there. With the new support, we expect a quick continuation of the bullish side. Potential higher targets are the 7.12000 and 7.12500 levels.
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