USDCAD and USDCNH: USDCAD erased last week’s losses
During this morning’s Asian trading session, USDCNH found support at 7.12000 and the EMA 200 moving average
USDCAD chart analysis
During this morning’s session, the USDCAD bullish trend continued. The pair successfully moved above the EMA 200 moving average and initiated a bullish consolidation up to 1.35500. Everything indicates that we could see a continuation to the bullish side and the formation of a new weekly high. Potential higher targets are 1.35600 and 1.35700 levels.
For a bearish option, the EMA 200 moving average plays a crucial role. A negative consolidation and a return of USDCAD back below this moving average would increase the bearish pressure. We would then see a retreat towards the weekly open price. If we do not manage to hold on there either, a further retreat and the formation of a new lower low will follow. Potential lower targets are 1.34900 and 1.34800 levels.
USDCNH chart analysis
During this morning’s Asian trading session, USDCNH found support at 7.12000 and the EMA 200 moving average. After that, we saw the start of a bullish consolidation and a jump to the weekly high at the 7.13000 level. The pair should be put on the bullish side because it is in a strong bullish momentum. Potential higher targets are 7.13500 and 7.14000 levels.
For a bearish option, we need a negative consolidation and pullback to the EMA 200 and the daily open price. This time, we count on a break below to a new daily low. With that move, USDCNH would move to the negative side and be under pressure to continue its retreat to lower levels. Potential lower targets are 7.11000 and 7.10500 levels.
