CADJPY Short|S/R Flip Retest| Local Resistance| Daily Support

28 ביולי 2020

Evening traders,

Today’s Analysis – CADJPY – impulse sell through technical level, rallies are to be sold into as the trend is bearish.

Points to consider,
- Macro trend bearish
- Daily support (immediate target)
- Local resistance (bearish retest)
- Oscillators below 50
- Volume below average

CADJPY’s macro trend is bearish with consecutive lower highs; this gives us a bearish bias on the overall market.

The trends immediate target is daily support, which will be apparent after confirming a bearish retest of local resistance.

Both oscillators are below 50; this signals weakness in the market, further momentum down is likely.

Volume is clearly trading below average; an impulse is most probable at key technical levels i.e. daily support.

Overall in my opinion, a bearish retest will allow for a short trade, risk has to be defined. Price action is to be used upon discretion.

What are your thoughts?

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And remember,

“The four most dangerous words in investing are: This time it's different.” Sir John Templeton