USDCAD and USDCNH: USDCAD is treading above 1.37800 level

• On Monday, the USDCAD rose to 1.37819 levels, followed by a pullback at 1.37500. 
• Pair USDCNH continues this week with previous bullish consolidation.

USDCAD chart analysis

On Monday, the USDCAD rose to 1.37819 levels, followed by a pullback at 1.37500. This morning’s Asian trading session brought stability and initiated a recovery to the 1.37750 level. Now, all eyes are on the US session, which is expected to increase volatility and reveal the direction we continue. A break above the 1.37820 level could push us to a new weekly high.

Potential higher targets are 1.38000 and 1.38200 levels. We need a negative consolidation pullback below the 1.37500 support level for a bearish option. This leads to the formation of a new weekly low and confirms that the dollar is under pressure, and the pair could drop to lower levels. Potential lower targets are 1.37400 and 1.37200 levels.

USDCNH chart analysis

Pair USDCNH continues this week with previous bullish consolidation. In the previous hour, we tested this week’s high at 7.27270. We have been in a bullish consolidation since the morning and expect to see a continuation to the bullish side. The pair has a chance to climb to a new weekly high. Potential higher targets are 7.27400 and 7.27600 levels.

We need a negative consolidation and pullback to the 7.26500 level for a bearish option. There we test the daily open price and the EMA50 moving average. A pullback below will strengthen the bearish momentum to the weekly open price 7.26290. This zone is very important for a longer-term view of USDCNH movements. A drop below forms a new weekly low and thus confirms the bearish primacy. Potential lower targets are 7.26200 and 7.26000 levels.