CADJPY Reversed Nicely Off Resistance, Prepare For Further Drop!
Sell below 84.88.
Stop loss at 85.56.
Take profit at 83.20.
Reason for the trading strategy (technically):
CADJPY reversed nicely off its resistance at 84.88 (100% Fibonacci extension, 76.4% Fibonacci retracement, horizontal swing high resistance) where could either move back up to its resistance before moving back down to its support or continue its move down to its support at 83.20 (61.8% Fibonacci retracement, horizontal pullback support). We do have to be cautious of the intermediate support at 83.91 (38.2% Fibonacci retracement, horizontal overlap support).
Stochastic (89, 5, 3) reversed nicely off its resistance at 95% where a corresponding drop could occur.
Stop loss at 85.56.
Take profit at 83.20.
Reason for the trading strategy (technically):
CADJPY reversed nicely off its resistance at 84.88 (100% Fibonacci extension, 76.4% Fibonacci retracement, horizontal swing high resistance) where could either move back up to its resistance before moving back down to its support or continue its move down to its support at 83.20 (61.8% Fibonacci retracement, horizontal pullback support). We do have to be cautious of the intermediate support at 83.91 (38.2% Fibonacci retracement, horizontal overlap support).
Stochastic (89, 5, 3) reversed nicely off its resistance at 95% where a corresponding drop could occur.