- On Monday, we saw the formation of a new nine-month high for the USDCAD at the 1.38651 level.
- During the Asian session this morning, we saw short-term volatility in the USDCNH and a pullback to the 7.25556 levels.
USDCAD Chart Analysis
On Monday, we saw the formation of a new nine-month high for the USDCAD at the level of 1.38651. During the Asian session this morning, the pair retreated to the level of 1.38385, testing the weekly opening price in that zone. The EMA 50 moving average provides additional support at that level. This led to the start of a new bullish consolidation and growth to the levels of 1.38595.
We are on the verge of testing the previous high and forming a new one. Possible upper targets are the levels of 1.38700 and 1.38800. However, we need to be cautious. A negative consolidation and a pullback of the USDCAD back to the weekly opening price could indicate a bearish option. With a push below this support, we move to the bearish side. This confirms that the pair does not have the strength for further growth and a pullback will follow. Possible lower targets are the levels of 1.38300 and 1.38200.
USDCNH Chart Analysis
During the Asian session this morning, we saw short-term volatility in the USDCNH and a pullback to the 7.25556 levels. After finding support there, the pair started a bullish consolidation to the 7.26760 level. The recovery seems slow, but we are inching towards the 7.27000 level and the 200 EMA. We expect momentum to take us above and push the USDCNH to higher levels.
Possible upper targets are 7.28000 and 7.29000 levels. For a bearish option, we need a negative consolidation and a pullback to this morning's support level. A revisit to that zone would put pressure on that level and could trigger a drop below to a new low. Possible lower targets are 7.25000 and 7.24000 levels.
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(tags to translate)USD/CAD
