- Since the beginning of the week, the USD/CAD has been on the decline.
- USDCNH's movement this week is in the range of 7.24000-7.21300.
USDCAD chart analysis
Since the beginning of the week, the USD/CAD has been on the decline. We spent Monday trying to hold above the 1.35000 level. During the Asian trading session, the dollar weakens again, and the pair falls below 1.35000 and the EMA200. Today's low is at 1.34750, but since it is still very low, we will likely see a new weekly low forming. Possible lower targets are 1.34800 and 1.34700 levels.
USDCAD must return above EMA200 and 1.35000 levels for a bullish option. Then we have to hang in there and make that new bottom. With a new impetus, we will start an upward consolidation. By moving above the 1.35100 level, we are climbing above the weekly opening price, which reinforces optimism for further recovery. Possible higher targets are 1.35200 and 1.35300 levels.
USDCNH chart analysis
USDCNH's movement this week is in the range of 7.24000-7.21300. The movement is quite calm but on the positive side, above the EMA200. There are slight signs that we will see the dollar continue to recover against the Chinese yuan. A break above 7.21500 would strengthen the bullish option, and we can expect further growth to higher levels. Possible higher targets are 7.22000 and 7.22500 levels.
We need negative consolidation and a pullback below the EMA200 and 7.20500 levels for a bearish option. There, we will test the weekly open price. A drop below that increases downward pressure on the dollar, and the currency could fall to a new weekly low. This would confirm the bearish momentum and potential lower targets are the 7.20000 and 7.19500 levels.
