USDCAD and USDCNH: USDCNH is in a positive trend

August 28, 2024

USDCAD and USDCNH: USDCNH is in a positive trend

  • On Friday, the USDCAD came under a lot of pressure, resulting in a strong bearish consolidation from the 1.36200 to 1.35000 level
  • In the first hours after the opening of this trading week, USDCNH fell to 7.10692

USDCAD chart analysis

On Friday, the USDCAD came under a lot of pressure, resulting in a strong bearish consolidation from the 1.36200 to 1.35000 level. After that, on Monday, we first saw a consolidation above that level, only for a break below to occur later and a drop to a new low at 1.34630. During this morning’s Asian trading session, the pair tried to maintain around 1.34800, but the attempt was short-lived.

A new bearish consolidation has started, and USDCAD is back in the zone of yesterday’s low. Bearish momentum is growing, and there are expectations that the pair could land at a new low. Potential lower targets are the 1.34600 and 1.34500 levels. For a bullish option, we need a positive consolidation and a price jump above the 1.34900 level. Then, the pair should stabilize there. After that, we can hope for further recovery. Potential higher targets are the 1.35000 and 1.35100 levels.

 

USDCNH chart analysis

In the first hours after the opening of this trading week, USDCNH fell to 7.10692. The pair received new support here, which initiated a new bullish consolidation. Today, we saw the formation of a weekly high at the 7.13420 level. We also have support from the EMA 50 moving average and expect to see further progress on the bullish side.

Potential higher targets are 7.13500 and 7.14000 levels. Additional significant resistance for USDCNH will be in the 200 EMA and the 7.14000 zone. For a bearish option, we need a negative consolidation AND a drop below the EMA 50 moving average and the 7.12500 level. With that step, we increase the bearish momentum, and the chances of starting a deeper retreat increase. Potential lower targets are 7.12000 and 7.11500 levels.

 

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