THIRD TIME'S THE CHARM! CADJPY SELL

2021年2月28日

CADJPY has ranged from 83 to 85 over the past week with it almost reaching 85 by Wednesday and dropping back down to 83.6 at the close for this week. Despite this, the pair still manages to stay on the short-term support it has built throughout February (purple line). The RSI is relatively low at the moment, though from the past few days I can see a possible right shoulder developing in the upcoming days which could mean the price for the pair could go up before dropping back down again. Drawing Fib retracements from October 2019 where the pair reached 85.4 all the way down to the 2020 lows, the 78.6% Fib is at 82.8 which also happens to be an extrapolated long-term support from November (blue line). I'm planning to put an entry to short at 84.5, targetting a move down to 82.8 with a SL at 85. Ideally I would want the pair to hit the low 70s but this is a more conservative target especially as the sell could bring more buyers back. Please leave a like if you agree and comment on your thoughts on the pair and the direction it's heading in. Thanks!