USDCAD and USDCNH: USDCNH in pullback to 7.24356 level
- Yesterday, we saw the formation of a new weekly USDCAD low at the 1.36030 level.
- We are currently looking at a pullback of USDCNH to a new weekly low at the 7.24356 level.
USDCAD chart analysis
Yesterday, we saw the formation of a new weekly USDCAD low at the 1.36030 level. With that, we fell below last week’s low. The pair manages to stabilize in that zone and return to the ziand 1.36300 level, skipping the weekly open price. During this morning’s Asian trading session, we see the initiation of a bullish consolidation above the EMA200 and 1.36600 levels. This led to the formation of a weekly high at the 1.37000 level.
If this consolidation continues, the USDCAD could continue its recovery. Potential higher targets are 1.37200 and 1.37400 levels. We need a negative consolidation and pullback down to the EMA200 and 1.36600 levels for a bearish option. Instability in that zone would easily drop the pair below and thus confirm the bearish momentum. Potential lower targets are 1.36400 and 1.36200 levels.
USDCNH chart analysis
We are currently looking at a pullback of USDCNH to a new weekly low at the 7.24356 level. During this morning’s Asian trading session, the pair successfully launched a bullish consolidation from 7.25000 to 7.25900 levels. We encounter resistance above, and additional pressure is created by the EMA200 moving average. Soon after, the pair initiates a bearish consolidation and falls to a weekly low.
Potential lower targets are 7.24200 and 7.24000 levels. For a bullish option, we first need a stop and the formation of new support. Returning to the 7.25000 zone would be a great move that could trigger a further recovery towards 7.25500 and the EMA200 moving average. If we have the strength to move above, it would be of great benefit to us for further growth to the bullish side. Potential higher targets are 7.26000 and 7.26500 levels.
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