- On Friday, the USDCAD came under a lot of pressure, resulting in a strong bearish consolidation from the 1.36200 to 1.35000 level.
- In the first hours after the opening of this trading week, the USDCNH fell to 7.10692
USDCAD Chart Analysis
On Friday, the USDCAD came under a lot of pressure, resulting in a strong bearish consolidation from the 1.36200 level to 1.35000. After that, on Monday, we first saw a consolidation above that level, only for a break below it and a drop to a new low at 1.34630 to follow. During the Asian trading session this morning, the pair attempted to hold around 1.34800, but the attempt was short-lived.
A new bearish consolidation has started and the USDCAD has returned to the zone of yesterday's low. The bearish momentum is growing and there are expectations that the pair can reach a new low. Possible lower targets are the levels of 1.34600 and 1.34500. For a bullish option, we need a positive consolidation and a price break above the level of 1.34900. Then, the pair should stabilize there. After that, we can expect further recovery. Possible upper targets are the levels of 1.35000 and 1.35100.
USDCNH Chart Analysis
In the first hours after the opening of this trading week, the USDCNH fell to 7.10692. The pair received fresh support here, which started a new bullish consolidation. Today, we saw the formation of a weekly high at the level of 7.13420. We also have support from the EMA 50 moving average and we expect to see further progress on the bullish side.
The higher potential targets are the 7.13500 and 7.14000 levels. Another significant resistance for the USDCNH will be at the 200 EMA and the 7.14000 zone. For a bearish option, we need a negative consolidation AND a drop below the 50 EMA and the 7.12500 level. With such a move, we increase the bearish momentum and the chances of starting a deeper pullback increase. The lower potential targets are the 7.12000 and 7.11500 levels.
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(tags to translate)USD/CAD
