USDCAD under pressure to fall below 1.3500 level today
- Yesterday USDCAD was in retreat from 1.35900 to 1.35000 levels.
- Yesterday, we saw a bullish attempt by USDCNH, which was stopped at the 7.21765 level.
USDCAD chart analysis
Yesterday USDCAD was in retreat from 1.35900 to 1.35000 levels. During the Asian trading session, the pair remained in that zone, exerting increasing pressure on the dollar, and therefore we expect further retreat. Today’s low is the 1.34970 level and there are great chances to break below and form a new low. Potential lower targets are 1.34900 and 1.34800 levels.
For a bullish option, we need a minimum return above the 1.35200 level and maintain ourselves there. If we succeed in this, we will be in a good position to initiate a bullish consolidation and continue the recovery. Potential higher targets are the 1.35300 and 1.35400 levels. The EMA200 moving average is in the zone around the 1.35500 levels.
USDCNH chart analysis
Yesterday, we saw a bullish attempt by USDCNH, which was stopped at the 7.21765 level. After that, the pair retreats to the previous movement zone of the 7.20600-7.21400 range. We are currently at 7.20900 and below the EMA200 moving average. We can say that we are under stronger bearish pressure. We are testing the lower zone, which, if the consolidation lasts, means we could slide below and form a new weekly low.
Potential lower targets are 7.20400 and 7.20300 levels. For a bullish option, we need a return of USDCNH above the EMA200 moving average to start. After that, we need to move above the 7.21000 level. From there, we need a new impulse for the continued bullish side. Potential higher targets are 7.21400 and 7.21600 levels.
