Today’s Analysis – CADJPY – trading at Range-Mid where a bearish retest is probable, confirming a potential right shoulder of a H&S pattern.
Points to consider, - Bearish Price Action - Daily S/R Resistance - Range Mid Resistance (.50 Fibonacci Confluence) - Volume Below Average
CADJPY’s immediate price action is bearish under range-mid; this allows us to have a bearish bias on the market.
The Daily S/R levels are clear boundaries respecting by price, break of either will coincide with the overall direction of the trend.
Current resistance, range-mid, in confluence with the 200 MA and .50 Fibonacci, a rejection here is plausible as price action morphs into a probable right shoulder.
The volume profile is currently below average, an influx is likely to when key trade location are being tested.
Overall, in my opinion, CADJPY is a valid short with defined risk; price action is to be used upon discretion/ management of trade.
Hope this analysis helps,
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“Only The Game , Can Teach You The Game” – Jesse Livermore