USDCAD AND USDCNH: USDCNH retreated to a new low yesterday
- Yesterday, we saw a new August high for USDCAD at the 1.39468 level.
- During this morning’s Asian trading session, USDCNH moved in the 7.13800-7.15200 range.
USDCAD chart analysis
Yesterday, we saw a new August high for USDCAD at the 1.39468 level. After that, the pair started a retreat until this morning at 1.37930 levels. This is where the weekly low and new support level for USDCAD were formed. From there, a new positive consolidation and recovery to the 1.38500 level were initiated. We are back above the EMA 200 moving average and need its support to continue on the bullish side.
Potential higher targets are the 1.38600 and 1.38700 levels. For a bearish option, we need a USDCAD pullback below the EMA 200 and 1.38200. That step strengthens the bearish momentum, and the pair will have to initiate a further pullback. Potential lower targets are 1.38100 and 1.38000. It is possible to start testing the weekly low in the 1.37900 zone.
USDCNH chart analysis
During this morning’s Asian trading session, USDCNH moved in the 7.13800-7.15200 range. Mild bullish consolidation pushes us towards the EMA 50 moving average and the 7.15400 level. If we go back to Monday, we will see the formation of a new weekly low at 7.08372 levels after a strong bearish consolidation. The pair managed to quickly stabilize there and start a recovery to today’s levels. For further growth on the bullish side, we need consolidation up to the 7.18000 level.
This moves us above the weekly open price and increases the chances of seeing a continuation on the bullish side. Potential higher targets are 7.19000 and 7.20000 levels. For a bearish option, we need a negative consolidation and a pullback to the 7.12000 level. That brings us back below the daily open price to form a new daily low. Potential lower targets are 7.10000 and 7.00000 levels.
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