USDCAD and USDCNH: USDCAD in pullback today to 1.37500
USDCAD is in retreat after climbing to 1.38462 levels on Tuesday.
This morning, a new weekly low for USDCNH was formed at the 7.24145 level.
USDCAD chart analysis
USDCAD is in retreat after climbing to 1.38462 levels on Tuesday. On Wednesday, the pair falls below the 1.3800 level until support at 1.37700. During this morning’s Asian trading session, we continue in the same direction until the 1.37400 level. We are stopping there for now and successfully holding above, moving up to the 1.37600 level. By returning to 1.37700, we would test the weekly open price.
Potential higher targets are 1.37800 and 1.37900 levels. For a bearish option, we need a continuation of negative consolidation and a drop below this morning’s support at 1.37400. Below, we go to a new daily low and will test the weekly at the 1.37250 level. Added support in that zone is the EMA200 moving average, which would have the strength to stop further declines.
USDCNH chart analysis
This morning, a new weekly low for USDCNH was formed at the 7.24145 level. This gives us new support and triggers resistance up to the 7.25000 level. Here, we have resistance at the EMA50 moving average and need another impulse to move to 7.25500, where we are testing the EMA200 moving average. If we manage to hold up there, the pair will have a good chance to initiate further resistance to the bullish side.
Potential higher targets are 7.26000 and 7.26500 levels. A new negative consolidation and pullback to this morning’s support level is needed for a bearish option. A retest could only increase the bearish pressure, and USDCNH would be forced to go to a new weekly low. Potential lower targets are 7.24000 and 7.23500 levels.
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