- The USD/CAD movement this week is in the area around the EMA200 moving average.
- On Monday, during the Asian session, the USDCNH currency pair rose to a new February high at 7.22554.
USDCAD chart analysis
The USD/CAD movement this week is in the area around the EMA200 moving average. Yesterday we tried to start a bullish consolidation above the 200 SMA but it stopped at the 1.34800 level. This was followed by a decline downwards, reaching support at 1.34300. The movement was in the range of 1.34400-1.34600 during the previous trading session. We expect the chart to be quiet until the US session, when US inflation news is announced.
If the news is positive for the dollar, a breakout of the 200 moving average will follow, and the new top for this week will be formed and the target is the 1.35000 level. We need to pull back below today's support at 1.34400 for a bearish option. The new daily low increases pressure on USD/CAD to continue searching for lower support. Possible lower targets are 1.34200 and 1.34000 levels.
USDCNH chart analysis
On Monday, during the Asian session, the USDCNH currency pair rose to a new February high at 7.22554. After that, we saw a pullback to the 7.21280 support level. We were able to stay above this level, then bounce back to the 7.22300 level, forming a lower high there. During today's Asian session, the pair is witnessing an upward bearish move to 7.12250 levels. With this move, we are testing the support area seen yesterday.
New pressure could take us to the 200 SMA in the area around 7.21000 levels. For a bullish option, USDCNH should return above 7.22000, confirming the previous bottom formation. After that, we expect to see a move above this morning's high and attack this week's high. Possible higher targets are 7.22500 and 7.23000 levels.
