- Last week, the USD/CAD pair made a strong upward movement on Tuesday to 1.35864 levels.
- Today, the USDCNH pair fell to a new two-week low at 7.20145.
USDCAD chart analysis
Last week, the USD/CAD pair made a strong upward movement on Tuesday to 1.35864 levels. We stopped there, and from there we retreated until today. Last Thursday, we witnessed a decline and the formation of a new low at the 1.34600 level.
On Friday and Monday, the dollar succeeded and partially recovered by growing above the 1.35000 level and the EMA200 moving average. The joy was short-lived because we encountered resistance at the 1.35125 level and started a new decline.
We are back below 1.35000 and the EMA200. The current situation is negative for the dollar and may lead to its decline below the previous low from Friday. This would create a new low for this week, and possible lower targets are the 1.34600 and 1.34400 levels.
USDCNH chart analysis
Today, the USDCNH pair fell to a new two-week low at 7.20145. During the Asian trading session this morning, the dollar attempted to initiate an upward consolidation but stopped at 7.21900. From there, we start a new bounce and fall to the bottom of the day. We get increased downward pressure by falling below the 200 EMA at 7.21500. Now, we expect that we will start to continue and visit the lower support levels.
Possible lower targets are 7.19500 and 7.19000 levels. If we were thinking on the upside, we would have to get back above the moving averages 7.21500 and EMA200. Then we will have to stay above them and form a bottom there. This is the only way we can start the bullish consolidation and continue the USDCNH recovery. Possible higher targets are 7.22000 and 7.22500 levels.
