- On Friday, USDCAD jumped to a new yearly high at 1.36476.
- USDCNH fell into some consolidation for the fourth day.
USDCAD Chart Analysis
On Friday, USDCAD jumped to a new yearly high at 1.36476. This was followed by a pullback and a drop below 1.36000 for the rest of the day. Yesterday the dollar tried to start a new bullish consolidation but was stopped at the level 0.36175. From there, we turn back to the bearish side and slide down to the 1.35700 level this morning. Here we find the EMA200, which stops the pullback and keeps us above.
With a break below, we will reach a new weekly low and thus confirm the bearish momentum. The lowest possible targets are the 1.35500 and 1.35400 levels. We need a positive consolidation and a move above the 1.35850 level for a bullish option. Therefore, we will skip the previous consolidation and can expect further growth and a transition to a more specific uptrend. The highest possible targets are the 1.36000 and 1.36200 levels.
USDCNH Chart Analysis
USDCNH fell into some consolidation for the fourth day. We are under more pressure this week as the move occurs below the EMA200 moving average. This morning took us to a new weekly low at 7.24024. We managed to get support at that level and recover to the 7.24450 level. Here we find the EMA50 and we must jump that resistance to start a greater recovery.
The highest possible targets are the 7.24800 and 7.25000 levels. In the area around 7.24800 we will fight again with the EMA200. If we turn to the bearish side again, we will be looking at the 7.24000 support level. A retest of that area would only increase the pressure on USDCNH to fall below and form a new low. The lowest possible targets are the 7.23800 and 7.23600 levels.
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