USDCAD and USDCNH: USDCAD again above the 1.38000 level

• USDCAD climbed to a five-month high this morning at the 1.38140 level. 
• During this morning’s Asian trading session, USDCNH rose to 7.28326. 

USDCAD chart analysis

USDCAD climbed to a five-month high this morning at the 1.38140 level. After forming a new high in the Asian session, the pair pulls back to the 1.37740 level testing that weekly open price. If we manage to hold up there, we will have the opportunity to visit this morning’s high and maybe see the formation of a new one. Potential higher targets are 1.38200 and 1.38400 levels.

We need a negative consolidation and a drop below the weekly open price for a bearish option. This step moves us to the bearish side and increases the negative pressure on USDCAD. The next important level is yesterday’s low at 1.37400. A break below it pushes us to a new weekly low and thus confirms the bearish momentum. Potential lower targets are 1.37200 and 1.37000 levels.

USDCNH chart analysis

During this morning’s Asian trading session, USDCNH rose to 7.28326. After that, the pair makes a pullback to support at the 7.26600 level. We have support here for now, but we remain under bearish pressure to slide to a new low. Potential lower targets are 7.26500 and 7.26000 levels.

In the zone around 7.26000, the pair could receive stronger support and thus remain in the bullish channel with the support of the EMA200 moving average. For a bullish option, we need an impulse above the 7.27500 level. Then, we have to maintain above that level if we plan to see a recovery on the bullish side. Potential lower targets are 7.28000 and 7.28500 levels.