USDCAD and USDCNH: USDCNH retreated below 7.17000

USDCAD chart analysis

On Friday, USDCAD retreated to support at the 1.36098 level. It was followed by a quick return to 1.36900 until the market closed. On Monday, the pair was not under bearish pressure, and we saw a pullback to the 1.36500 level. We managed to get new support there and form a higher low compared to Friday’s. After that, a positive consolidation and regrowth to the 1.36950 level and the EMA200 moving average were initiated.

It could easily happen that we encounter resistance here again and turn to the bearish side. Should the pair find enough strength to produce a bullish impulse above, it could trigger a further recovery above the 1.37000 level. Potential higher targets are 1.37200 and 1.37400 levels.

USDCNH chart analysis

On Friday, USDCNH retreated to 7.16530 levels. We stopped there and got support to initiate a positive consolidation and return to the 7.19000 level. On Monday, the recovery continued, and we returned above the EMA50 moving average. During this morning’s Asian trading session, the pair broke yesterday’s high, rising to 7.22650 levels. We continue with bullish consolidation and expect to reach 7.23000 levels.

At that level, we meet the EMA200 moving average, and we could have resistance to further recovery. Potential higher targets are 7.24000 and 7.25000 levels. We need a negative consolidation and a pullback to the 7.20000 level for a bearish option. We are thus testing yesterday’s support level. Potential lower targets are 7.19000 and 7.18000 levels.

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