CADJPY reacting below descending trendline resistance! Further drop incoming!

Price tested and reacted below descending trendline resistance. A short term drop below 1st resistance at 87.053 towards 1st support at 86.856 could be expected. Price is below moving average and MACD indicator is below 0 showing room for further bearish downside as well.

Trading Recommendation

Entry: 87.053

Reason for Entry:

61.8% Fibonacci retracement, descending trendline resistance

Take Profit: 86.856

Reason for Take Profit:

-27.2% Fibonacci retracement, 61.8% Fibonacci extension, Graphical swing low

Stop Loss: 87.132

Reason for Stop Loss:

Graphical swing high