- USDCAD recovered this week from Friday's decline to 1.34200 levels.
- USDCNH has been declining since the beginning of this week.
USDCAD chart analysis
USDCAD recovered this week from Friday's decline to 1.34200 levels. Yesterday, we moved above the 1.34600 level and formed a weekly high at 1.35100. Then, during the Asian session this morning, the pairs fell back below 1.34700, retesting the support area. On the upside, we have the EMA200 and we will have to break above it to continue to the upside.
Possible higher targets are 1.35200 and 1.35300 levels. New pressure in the support zone may negatively affect the development of events. A break below would lead to a drop to a new weekly low, and this gives us confirmation of the downward momentum. Possible lower targets are 1.34500 and 1.34400 levels.
USDCNH chart analysis
USDCNH has been declining since the beginning of this week. After falling below the 7.2000 level, a two-day bearish consolidation began. At this moment, we are falling to a new weekly low of 7.17180. The dollar is currently under pressure from news related to rising inflation in the American territories. This could put additional pressure on the already weak dollar and send USDCNH to lower levels.
Possible lower targets are 7.17500 and 7.1700 levels. For the bullish option, we need to come back and hold above 7.18500. This completes the bottom formation, and we have the opportunity to start an upward consolidation. Possible higher targets are 7.19000 and 7.19500 levels. EMA200 remained higher in the region, around 7.20000 levels.
