By Aleksandar Aleksin On Jul 2, 2024 1 minute, 28 seconds

USDCAD and USDCNH: USDCNH increasingly above 7.30000

Last week, USDCAD dropped to 1.36046 level.
The USDCNH currency continues the previous bullish trend at the beginning of July.

USDCAD chart analysis

Last week, USDCAD dropped to 1.36046 level. From that moment until now, we have been in a bullish consolidation. Yesterday, the pair received solid support at 1.36700, after which a bullish consolidation was initiated near the 1.37500 level. During this morning’s Asian session, the pair made another bullish step to 1.37554 levels. After forming this week’s high pair, it began to retreat below the daily open price and is now at 1.37325.

To continue on the bullish side, we need the initiation of a new positive consolidation and a return above the 1.37500 level. We are about to jump over the previous high and form a new one. Potential higher targets are 1.37600 and 1.37700 levels. If the pullback continues to the bearish side, the first support is at 1.37200 in the EMA50 moving average.

USDCNH chart analysis

The USDCNH currency continues the previous bullish trend at the beginning of July. During this morning’s Asian trading session, a new high was formed at the 7.30915 level. We have the support of the EMA50 moving average and expect further growth to the bullish side. We are a little short of breaking above the 7.31000 level. Potential higher targets are 7.31250 and 7.31500 levels.

For a bearish option, we need the initiation of a negative consolidation and a drop of USDCNH below the 7.30500 level. With that step, we fall below the daily open price, moving to the bearish side. The first support is the EMA50 moving average in the zone of 7.30250 levels. If it does not hold, the pair will be under a lot of pressure to test the weekly open price at 7.30000. Potential lower targets are 7.29500 and 7.29000 levels.