USDCAD and USDCHF: USDCAD again stops at the 1.37000 level
- Yesterday’s attempt to recover USDCAD was stopped at the 1.37000 level.
- During this morning’s Asian trading session, USDCNH hit its weekly low for the second time at the 7.26050 level.
USDCAD chart analysis
Yesterday’s attempt to recover USDCAD was stopped at the 1.37000 level. We failed to reach this week’s high at 1.37080. A lower high was formed, and the pair began to retreat. During this morning’s Asian session, we see a continuation of the pullback to support at the 1.36700 level. The pair is now at 1.36750 and testing the EMA 50 moving average. With momentum up to 1.36900, we would see a breakout of this morning’s bearish formation, and we could expect further growth on the bullish side.
Potential higher targets are 1.37000 and 1.37100 levels. We need a pullback below today’s support level for a bearish option. Thus, we move below the EMA 50 moving average and will be under more bearish pressure. The next support is at 1.36600 in the EMA 200 moving average. Potential lower targets are 1.36500 and 1.36400 levels.
USDCNH chart analysis
During this morning’s Asian trading session, USDCNH hit its weekly low for the second time at the 7.26050 level. This time, we got new support and recovered to the weekly open price at 7.27200. Now, the pair needs to hold here so that it can initiate a bullish consolidation and continue its growth. Potential higher targets are the 7.27500 and 7.28000 levels.
USDCNH could find additional resistance at 7.28000 in the EMA 200 moving average. For a bearish option, we need to see a new pullback to the weekly support zone. It would be our third descent into that zone, and this time, it could reflect badly on USDCNH. A new impulse below would lead to the formation of a new weekly low and thereby extend the bearish option. Potential lower targets are the 7.26000 and 7.25500 levels.
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