USDCAD Dips to 1.33586: Guide to Recovery Nowadays
The previous week was bad for USDCAD as we saw a drop to 1.33586. Yesterday, USDCNH rose to a two-week high at the 7.22459 level.USDCAD chart analysis
The previous week was bad for USDCAD as we saw a drop to 1.33586. After receiving support on Wednesday at that level, the pair started with a bullish consolidation so that on Friday, before the market closed, we climbed to the 1.34670 level. Monday brought us a bullish continuation and a jump to the 1.35440 level. During the previous Asian trading session, the pair pulled back and successfully tested the 1.35000 level, starting a new bullish consolidation.
Now, we are again in a position to test the previous high and perhaps see a break above and the formation of a new one. Potential higher targets are 1.35500 and 1.35600 levels. We need a pullback below the 1.35000 support level for a bearish option. That would put us under bearish momentum to continue with further decline. Potential lower targets are 1.34800 and 1.34600 levels.
USDCNH chart analysis
Yesterday, USDCNH rose to a two-week high at the 7.22459 level. In that zone, we encountered resistance and started to retreat during the previous Asian session. The pair is now at the 7.19820 level and is testing support at the EMA200 moving average. Last week, we managed to stay above him, and we expect that now. New supports would trigger a bullish consolidation. A move above the 7.21000 level would give us enough room to manoeuvre before the next impulse.
Potential higher targets are 7.21500 and 7.22000 levels. A drop in USDCNH below the EMA200 to 7.19000 levels would increase the pressure on the dollar. This would form a new weekly low and confirm the bearish option. With this pullback, USDCNH would lose its previous bullish momentum, and potential lower targets are 7.18000 and 7.17000 levels.
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