- USD/CAD has resumed its upward trend after consolidating last week.
- This morning, USD/CNY fell to the 7.20500 level.
USDCAD chart analysis
Follows last week. USDCAD is now in an uptrend after consolidation. The pair rose to levels of 1.360610 yesterday. A new high has been formed for the year. Since then, the pair has returned to new support at 1.35600. We start with a bullish consolidation and rise to the 1.35900 level. If this movement continues, we may retest the 1.36000 level within the next few hours.
With a stronger push, we will move higher and form a new high. Possible higher targets are 1.36100 and 1.36200 levels. We need negative consolidation and a pullback below the 1.35600 support level for a bearish option. USDCAD would open the door to a deeper decline with this move. Possible lower targets are 1.35500 and 1.35400 levels.
USDCNH chart analysis
This morning, the USDCNH pair fell to test the 7.20500 level. From Monday to Wednesday, we were in an uptrend reaching the 7.22034 level. On Wednesday afternoon, after forming this rally, the pair began to retreat to the weekly opening price. It gets this support and recovers to the 7.21000 level. It is also positive that we are back above the EMA200. Now, we need to stay above to start further recovery.
Possible higher targets are 7.21500 and 7.21750 levels. We need negative consolidation and decline to retest 7.20500 for a bearish option. A breakout below indicates that USD/CNY is moving to the downside, and a pullback will follow. Possible lower targets are 7.20000 and 7.19500 levels.
