USDCAD and USDCNH: USDCAD in pullback from 1.37000 level
- During this morning’s Asian trading session, USDCAD rose to 1.36984, forming a new weekly high there.
- USDCNH’s strong bullish consolidation continues today. On Wednesday, we had a minor resistance at the 7.25000 level but successfully crossed it in the US session.
USDCAD chart analysis
During this morning’s Asian trading session, USDCAD rose to 1.36984, forming a new weekly high there. After that, the pair slows its growth and stops, triggering a bearish consolidation. We are now at the 1.36780 level and expect a further pullback as the dollar is under pressure. Potential lower targets are 1.36700 and 1.36600 levels.
Another key aspect to consider in the USDCAD analysis is the EMA50 moving average, which is currently in the 1.36600 zone. If this level doesn’t hold, USDCAD could descend to EMA200 at 1.36500. To shift the market sentiment to a bullish option, we need a new positive consolidation and recovery above the 1.36900 level. This would take us beyond the previous consolidation and potentially test the weekly high. Potential higher targets are 1.37000 and 1.37100 levels.
USDCNH chart analysis
USDCNH’s strong bullish consolidation, which began earlier, is still in play today. On Wednesday, we encountered a minor resistance at the 7.25000 level, but this was successfully crossed in the US session. The pair didn’t stop there, but continued to grow, forming a weekly low today at 7.25818 level. We are currently at 7.25640 and are likely to see a further recovery to the bullish side.
Potential higher targets are 7.26000 and 7.26500 levels. We need a negative consolidation and pullback to the 7.25000 level for a bearish option. There, we will test the EMA50 moving average. The new impulse pulls us to a new daily low and thus confirms the bearish momentum. Potential lower targets are 7.24500 and 7.24000 levels.
