USDCAD Analysis: Pressure Building Below 1.37000 Level
- Yesterday, we saw an attempt to recover UDSCAD, which was stopped at 1.37300.
- USDCNH rose to 7.27404 this morning, forming a new weekly high.
USDCAD chart analysis
Yesterday, we saw an attempt to recover UDSCAD, which was stopped at 1.37300. There, we encountered the EMA200 moving average, which further increased the pressure on the dollar, after which a retreat below the 1.37000 level was initiated. During this morning’s Asian trading session, the pair continued its consolidation, retreating to 1.36700.
We are under pressure here to continue down to this week’s support at the 1.36550 level. Potential lower targets are 1.36600 and 1.36500 levels. We need a positive consolidation and retracement of USDCAD to 1.37000 levels for a bullish option. This brings us back to the daily open price.
Moving above, we come to the EMA200 and test its resistance. A new impulse would successfully move us above and relieve the bearish burden. Potential higher targets are 1.37200 and 1.37300 levels.
USDCNH chart analysis
USDCNH rose to 7.27404 this morning, forming a new weekly high. During the Asian session, there is a strong bearish impulse and a pullback to support at the 7.26500 level. The pair continues to be under pressure here and moves below to a new daily low at the 7.26200 level. Additional pressure creates the EMA50 moving average and directs us towards the 7.26000 level.
Potential lower targets are 7.25800 and 7.25600 levels. EMA200 moving average could stop further retreat in the zone of 7.25800 levels. USDCNH would have to move back above the 7.27000 level for a bullish option. This brings me back above the EMA50, and we cross above the previous high. This will strengthen the recovery and push us to this morning’s high. Potential higher targets are 7.27200 and 7.27400 levels.
