- Last week, the USDCAD pair made a strong bullish move on Tuesday towards the 1.35864 level.
- Today, USDCNH fell to a new two-week low at 7.20145.
USDCAD Chart Analysis
Last week, the USDCAD pair made a strong bullish move on Tuesday towards the 1.35864 level. There we stopped and from there we retreated until today. Last Thursday we saw a drop and the formation of a new low at the level 1.34600.
On Friday and Monday, the dollar was successful and partially recovered by growing above the 1.35000 level and the EMA200 moving average. The joy was short-lived because we found resistance at the 1.35125 level and started a new pullback.
We are back below 1.35000 and the EMA200 moving average. The current situation is negative for the dollar and could cause a drop below the previous low on Friday. This would create a new low for this week and the lowest potential targets are the 1.34600 and 1.34400 levels.
USDCNH Chart Analysis
Today, USDCNH fell to a new two-week low at 7.20145. During the Asian session this morning, the dollar attempted to start a bullish consolidation but was stopped at 7.21900. From there, we begin a new pullback and fall to today's low. We get further bearish pressure by falling below the EMA200 at the 7.21500 level. We now hope to begin a continuation and visit lower support levels.
The lowest possible targets are the 7.19500 and 7.19000 levels. If we think on the bullish side, we would have to break above the moving average of 7.21500 and EMA200 again. Then we would have to stay above them and form a bottom there. Only then can we begin a bullish consolidation and a greater recovery of USDCNH. The highest potential targets are the 7.22000 and 7.22500 levels.
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