USDCAD Analysis: Strong Momentum Pushes Pair to 1.36000

• Yesterday, we saw a slight pullback of USDCAD from the weekly open price to the 1.35200 level.
• USDCNH is in a steady, bullish consolidation that started last Tuesday. 

USDCAD chart analysis

Yesterday, we saw a slight pullback of USDCAD from the weekly open price to the 1.35200 level. We successfully got support there and started a bullish consolidation. During this morning’s Asian trading session, we crossed above the 1.35500 resistance level. In the EU session, we continued all the way to 1.36004, and there, we formed a new weekly high. For now, we are holding below that level, pulling back to the 1.35650 level.

If we manage to hold above this level, we will have the opportunity to attack the previous high and try to get a new one. Potential higher targets are 1.36000 and 1.36100 levels. We need a negative consolidation and pullback below 1.35600 for a bearish option. Thus, we started a new decline with an eye on the 1.35400 support zone this morning. Potential lower targets are 1.35300 and 1.35200 levels.

USDCNH chart analysis

USDCNH is in a steady, bullish consolidation that started last Tuesday. During this morning’s Asian session, the pair made a breakthrough above the 7.20800 resistance zone. After that, we continued above 7.21000 until the new high of 7.21314. We are currently still in that zone, holding above the 7.21000 level. If we stay here, we will have the opportunity to continue on the bullish side and reach new higher levels.

Potential higher targets are the 7.21500 and 7.22000 levels. We need a pullback below the 7.21000 level for a bearish option. Next, we look at the 7.20800 level because if we break below it, we are back in the previous consolidation. In this way, an increase in bearish momentum would continue to pressure the price, directing it to the bearish side. Potential lower targets are the 7.20500 and 7.20000 levels.