USDCAD and USDCNH: USDCAD is trying to form a new low
- On Wednesday, USDCAD retreated to a new weekly low at 1.34410
- During this morning’s Asian trading session, USDCNH initiated a strong bearish consolidation from the 7.13225 level
USDCAD chart analysis
On Wednesday, USDCAD retreated to a new weekly low at 1.34410. After that, we saw a bullish consolidation to resistance at the 1.34890 level. During this morning’s Asian session, we were in a pullback again, but this time, we found support at 1.34500 and formed a higher low. This is a sign to us that we could start a bullish consolidation to a new daily high. Potential higher targets are the 1.35000 and 1.35200 levels.
For a bearish option, we need a negative consolidation and a new pullback down to the 1.34500 level. With this, we attack today’s low, which could produce a new lower low. Strong bearish momentum would quickly move us lower and confirm that the USDCAD is under strong pressure to continue its pullback. Potential lower targets are the 1.34400 and 1.34200 levels.
USDCNH chart analysis
During this morning’s Asian trading session, USDCNH initiated a strong bearish consolidation from the 7.13225 level. Last night, we attempted to move above the EMA 200 moving average, but we had no success in doing so. This triggered a pullback, and USDCNH fell to 7.08460 levels. Here, we formed a new weekly low. After that, the pair stabilized there and recovered to the 7.10000 level. Now, we have a new resistance, and we turn to the bearish side again.
Potential lower targets are 7.08000 and 7.07000 levels. For a bullish option, we need a positive consolidation and a price break above the 7.10000 level. With that, we move to a new high, thus strengthening the bullish momentum. Potential higher targets are 7.11000 and 7.12000 levels
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