After a bear spike taking out my previous cadjpy long trade at breakeven I have found a re-entry.
Reasons for re-entry:
Spike tested 4H 50ema which is currently a dynamic resistance.
Retesting broken daily descending channel.
50% retracement from previous 4H swing low.
4H body closure above channel.
The 1.618 fib also lines up perfectly with my previous take profit target which leads me to believe this trade should play out nicely...
My trade:
BUY CADJPY @ 82.80
SL @ 82.40 (40)
TP @ 83.90 (110)
Risk:Reward = 1 : 2.75
Reasons for re-entry:
Spike tested 4H 50ema which is currently a dynamic resistance.
Retesting broken daily descending channel.
50% retracement from previous 4H swing low.
4H body closure above channel.
The 1.618 fib also lines up perfectly with my previous take profit target which leads me to believe this trade should play out nicely...
My trade:
BUY CADJPY @ 82.80
SL @ 82.40 (40)
TP @ 83.90 (110)
Risk:Reward = 1 : 2.75