USDCAD and USDCNH: USDCNH pauses at 7.24956 this morning

USDCAD chart analysis

USDCAD has been in a mild bullish consolidation since the beginning of this week. The 1.36000 level has proven to be a strong support, initiating a positive consolidation up to the 1.36400 level. However, we encounter the EMA200 moving average at this level, which acts as a strong resistance. We now have a slight pullback up to the 1.36250 level, where we expect a new support level to form.

On the downside, the EMA50 moving average is approaching and could push USDCAD to the bullish side. Potential higher targets are 1.36400 and 1.36500 levels. We need a negative consolidation and pullback to the weekly open price at 1.36100 for a bearish option. A fall below this level would confirm the bearish momentum and weakness of the dollar. Potential lower targets are 1.36000 and 1.35900 levels.

USDCNH chart analysis

During this morning’s Asian trading session, USDCNH jumped over last week’s high and climbed to a new one at 7.24956 level. After that, the pair descends with a bearish impulse to the 7.24000 level, gaining new support. Since then, we have been in a slight bullish consolidation and are now at the 7.24540 level. There are good chances to continue the recovery and reach the 7.24700 level, the daily open price.

By moving above, we return to the bullish side, and it will be easier for us to start conquering higher levels. Potential higher highs are the 7.25000 and 7.25250 levels. We need a new drop to the 7.24000 support level for a bearish option. The impulse below will form a new low and thus confirm the bearish momentum. Potential lower targets are 7.23750 and 7.23500 levels. EMA200 is waiting for us at the 7.23500 level.

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