Today’s Analysis- CADJPY – price impulse through key structure, an S/R flip retest will validate it as support.
Points to consider,
- Trend oversold bounce ( )
- .618 Fibonacci (Resistance)
- Structural support (S/R Flip)
- Stochastics sell cross
CADJPY trend impulse was due to oversold conditions indicated by the . A swing lower failure will indicate continuation.
The .618 Fibonacci has been respected, price is likely to retrace for an S/R Flip retest. This will solidify structural support holding true.
The stochastics has a valid sell cross which is indicative of momentum shifting in the market. A influx is also present, these influxes usually mark temporary tops.
Overall, in my opinion, CADJPY is likely to retrace and hold structural support. This will validate a long trade with defined risk. Discretion is to be used upon management.
What are your thoughts?
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“If you can’t take a small loss, sooner or later you will take the mother of all losses.” – Ed Seykota