Today’s analysis – CADJPY – confirming a bearish divergence and breaking Daily S/R, lower targets probable,
Points to consider, - Swing high failure - Daily S/R (resistance) - Local S/R (support) - Oscillators divergence - Bearish Price Action
CADJPY’s recent high was not exceeded, establishing a valid failure swing. This allows us to have a bearish bias on the market.
The Daily S/R is the immediate resistance; price respecting this level will confirm a bearish retest. The 200 DMA is currently supressing price; a break will likely be impulsive into Daily S/R and 21 DMA which is in confluence.
Local support is the next HTF trade location, testing and holding this area will be critical for the overall trend.
Both oscillators are below 50, this is indicative of weakness in the market thus any rallies are likely to be sold into.
Overall, in my opinion, the current price action is bearish, this allows for a valid short with defined risk. Price action is to be used upon management/ discretion of trade.
Hope this analysis helps!
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