USDCAD Technical Analysis: Pullback Below 1.35000 Level
- Pair USDCAD last week made a strong bullish move on Tuesday to 1.35864 levels.
- Today, USDCNH fell to a new two-week low at 7.20145 level.
USDCAD chart analysis
Pair USDCAD last week made a strong bullish move on Tuesday to 1.35864 levels. We stopped there, and from there, we retreated until today. Last Thursday, we saw a decline and the formation of a new low at the 1.34600 level.
On Friday and Monday, the dollar succeeded and partially recovered by growing above the 1.35000 level and the EMA200 moving average. The joy was short-lived because we encountered 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 lead to a drop below the previous low from Friday. This would create a new low for this week, and the potential lower targets are 1.34600 and 1.34400 levels.
USDCNH chart analysis
Today, USDCNH fell to a new two-week low at 7.20145 level. During this morning’s Asian trading session, the dollar tried to initiate a bullish consolidation but was stopped at 7.21900. From there, we start a new pullback and fall to today’s low. We get increased bearish pressure by falling below the EMA200 at the 7.21500 level. Now, we expect to start a continuation and visit lower support levels.
Potential lower targets are 7.19500 and 7.19000 levels. If we think on the bullish side, we would have to go back above the 7.21500 and EMA200 moving average. Then we would have to stay above them and form a bottom there. This is the only way we can initiate bullish consolidation and further recovery of USDCNH. Potential higher targets are 7.22000 and 7.22500 levels.
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