USDCAD and USDCNH: USDCAD breaks below 1.36400 level
- During this morning’s Asian trading session, the USDCAD moved in the 1.36250-1.36400 range.
- USDCNH rose to 7.31142 yesterday, forming a new July high.
USDCAD chart analysis
During this morning’s Asian trading session, the USDCAD moved in the 1.36250-1.36400 range. In the previous two days, we saw a significant retreat from 1.37554 to 1.36172, the low formed last night. As we remain in the support zone in today’s EU session, it’s important to be aware that a new impulse below USDCAD could lead to the formation of a new weekly low, adding urgency to the current market situation.
Potential lower targets are 1.36000 and 1.35900 levels. We need a positive consolidation above the 1.36400 daily open price for a bullish option. With that step, the pair would break out of the support zone. After that, we can expect the bullish momentum to increase and USDCAD to climb higher. Potential higher targets are 1.36600 and 1.36800 levels.
USDCNH chart analysis
USDCNH rose to 7.31142 yesterday, forming a new July high. At that level, bullish momentum was lost, and the pair began to retreat. A quick bearish consolidation brought us down to 7.29200, a new weekly low. The pair managed to hold there and return above the EMA200 moving average and the 7.30000 level. During this morning’s Asian session, there was new volatility, and USDCNH was again forced to retreat.
USDCNH: We are once again moving below the EMA200 moving average. This time, the market could see a deeper pullback and the formation of a new lower low. However, it’s important to note that a positive consolidation and a return above the 7.30000 level are crucial for a bullish option. This would provide the support of EMA200 and a return above the weekly open price, leading to potential higher targets at 7.30200 and 7.30400 levels.
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