USDCAD and USDCNH: USDCAD is turning to the bearish side

August 2, 2024

USDCAD and USDCNH: USDCAD is turning to the bearish side

  • On Wednesday, we saw the USDCAD pull away from the previous bullish trend. 
  • During this morning’s Asian trading session, USDCNH retreated to 7.21000, forming a new weekly low there. 

USDCAD chart analysis

On Wednesday, we saw the USDCAD pull away from the previous bullish trend. Bearish consolidation first brought us below the weekly open price, after which the bearish momentum strengthened and fell last night to 1.37875 levels. We formed a weekly low there but received support from the EMA 200 moving average in that zone. During this morning’s Asian session, the pair initiates a bullish consolidation and recovers to 1.38400.

Despite the current resistance, there is a strong potential for USDCAD to break above and return to the bullish side. The pair is currently positioned at 1.38200 between the weekly open price and the EMA 200 moving average. This presents a hopeful scenario for traders and investors. Potential higher targets are 1.38500 and 1.38600 levels. On the other hand, for a bearish option, the pair must drop below the EMA 200. This would indicate a shift to stronger bearish pressure and could lead to further pullback. Potential lower targets are 1.37900 and 1.37800 levels.

 

USDCNH chart analysis

During this morning’s Asian trading session, USDCNH retreated to 7.21000, forming a new weekly low there. Soon after, a strong bullish consolidation was initiated, and the pair recovered to 7.25730 levels. We are now at the EMA 200 moving average and could cross it soon. In the 7.26300 zone, we have the weekly open price, which is our next important target.

Potential higher targets are 7.26500 and 7.2700 levels. We need a new negative USDCNH consolidation back to 7.24000 for a bearish option. There, we will test the support of the EMA 50 moving average. Failure to hold the pair above will cause us to continue the pullback. After that, the chances of testing the daily open price again increase. Potential lower targets are 7.22000 and 7.21000 levels.

 

The post USDCAD and USDCNH: USDCAD is turning to the bearish side appeared first on FinanceBrokerage.