USDCAD and USDCNH: USDCAD at 1.372500 support level
Yesterday, we witnessed a significant jump in USDCAD to 1.37628 levels, forming a weekly high.
USDCNH has been steadily recovering since the beginning of this week.
USDCAD chart analysis
Yesterday, we witnessed a significant jump in USDCAD to 1.37628 levels, forming a weekly high. Although we couldn’t sustain above that point and experienced a pullback to the 1.37170 support level (a level where the price tends to stop falling and start rising), the pair managed to stay above it during the Asian trading session.
This led us to the 1.37400 level, where we formed a daily high. With EMA50 support (a technical indicator that shows the average price over a set period, with more weight given to the latest data) in place, we anticipate a bullish continuation (a price trend that is moving up), offering potential profit opportunities.
It’s crucial to consider potential higher and lower targets for both currency pairs. For USDCAD, potential higher targets are 1.37500 and 1.37600 levels. However, a bearish impulse below this morning’s support level could open up a bearish option, leading us down to 1.37100.
We would then test the EMA200 moving average there. If it fails to provide adequate support, we may need to seek better support. Potential lower targets are 1.37000 and 1.36900 levels.
USDCNH chart analysis
USDCNH has been steadily recovering since the beginning of this week. Despite some volatility on Monday, we returned to the crucial 7.20000 support level. The pair received robust support from the EMA50 moving average, playing a significant role in its successful recovery to the 7.23377 level, crossing above the EMA200 moving average. This reaffirms our confidence in the potential for further consolidation and climb to higher levels.
Potential higher targets for USDCNH are 7.24000 and 7.25000 levels. However, we must be mindful of the potential risks. A negative consolidation and pullback below the 7.22000 level could trigger a bearish option. This would lead us below the moving averages, increasing the pressure and potentially directing us towards lower support levels such as 7.21000 and 7.20000.
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