- During the Asian session this morning, the USDCAD retreated to the 1.37250 level.
- On Wednesday, USDCNH rose to 7.19456, a new weekly high.
USDCAD Chart Analysis
During the Asian session this morning, the USDCAD pair retreated to the level of 1.37250. We were close to falling below the weekly low, but the pair managed to stop. A new bullish consolidation and recovery has started to the level of 1.37600. We are now testing the EMA 50 moving average and expect a move above its line. After that, we will get new support and we can start further recovery with more relief.
Possible upper targets are 1.37800 and 1.38000 levels. We need a negative consolidation up to the 1.37200 support zone for a bearish option. With the new decline, it would be the third time in the last 24 hours. We are heading for a new weekly low with the momentum ahead and we expect a further pullback. Possible lower targets are 1.37000 and 1.36800 levels.
USDCNH Chart Analysis
On Wednesday, the USDCNH rose to 7.19456, a new weekly high. After that, we saw a stop in that zone and the start of a bearish consolidation to the support zone of 7.16000. During the Asian session this morning, the pair managed to start a recovery from that zone and break above the level of 7.18000. To continue on the bullish side, we need a fresh push above the EMA 200 and 7.19500 levels.
Possible upper targets are the 7.20000 and 7.21000 levels. For a bearish option, we need a negative consolidation to the 7.15000 level. This way, we will form a new daily low and get confirmation of the growing pressure on the USDCNH. After that, the only option is to see a further pullback to lower levels. Possible lower targets are the 7.14000 and 7.13000 levels.
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(tags to translate)USD/CAD