USDCAD Pullback Analysis: Testing Support at 1.35640 Level
- USDCAD has been in a pullback since the beginning of this week.
- On Monday, at the beginning of the Asian session, there was a sudden drop in USDCNH from 7.28000 to 7.23500.
USDCAD chart analysis
USDCAD has been in a pullback since the beginning of this week. We started from the 1.36066 level and are now at the 1.35640 level. We are nearly touching the EMA200 at 1.35520 and testing that support level. During the Asian trading session, we encountered resistance at the 1.35900 level, after which the pair started to retreat in the EU session. Going down to the EMA200 and below will only increase the bearish momentum.
Potential lower targets are 1.35500 and 1.35400 levels. We need a return to the resistance zone around 1.35900 for a bullish option. Then we also need to keep up there. With new momentum, we move above and initiate a bullish consolidation. Potential higher targets are 1.36000 and 1.36200 levels.
USDCNH chart analysis
On Monday, at the beginning of the Asian session, there was a sudden drop in USDCNH from 7.28000 to 7.23500. In continuation to today, the movement occurs in the 7.24000-7.25500 range. Pair remains under some pressure, which could negatively affect the movement and send us to lower levels. Potential lower targets are 7.23000 and 7.22000 levels.
Additional support is the EMA200 moving average in the zone around 7.23000 levels. If we are considering a bullish option, we need a return above the 7.25500 level. Then, we need to hold there and form a bottom at that place. After that, we can expect to continue on the bullish side and climb higher. Potential targets are 7.26000 and 7.27000 levels.
