USDCAD and USDCNH: USDCAD rises unstoppably above 1.38000

• During this morning’s Asian trading session, USDCAD continued its previous bullish consolidation. 
• Today, we watched USDCNH fall to the 7.20285 level, where a new weekly low was formed. 

USDCAD chart analysis

During this morning’s Asian trading session, USDCAD continued its previous bullish consolidation. In the EU session, the pair gained strength and continued to 1.38494 levels, forming a new three-month high. The dollar is on a roll while the Canadian dollar is under severe pressure. We expect to see a continuation of the bullish side and the formation of a new high. Potential higher targets are 1.38600 and 1.38800 levels.

For a bearish option, we need a negative USDCAD consolidation to 1.38000 levels. There, we will test the daily open price. If the pair fails to hold above, it must drop to a new daily low. With that step, we confirm the bearish momentum and expect a further retreat to a new low. Potential lower targets are 1.37800 and 1.37600 levels. A major support zone is around 1.37400 in the EMA 200 moving average.

USDCNH chart analysis

Today, we watched USDCNH fall to the 7.20285 level, where a new weekly low was formed. After that, the pair managed to stabilize above 7.21000. We then initiate a bullish impulse to 7.24000 and expect to see a recovery of this pair to higher levels. Potential higher targets are 7.25000 and 7.26000 levels. We can expect the first stronger resistance in the 7.26500 zone in the EMA 50 moving average.

For a bearish option, we need a passive consolidation of USDCNH below the previous support at 7.21000. After that, the pair will be under pressure to slide to a new low, and thereby confirm the bearish momentum. Potential lower targets are 7.20000 and 7.19000 levels.