FX.co ★ CADJPY short-term bearish pressure | 21st Oct 2021

Price is abiding to an ascending trendline, signifying a bullish momentum, however, we are expecting price to do a short-term retracement. We can expect price to be reversing from 1st Resistance in line with daily resistance and drop towards the 1st Support level in line with 23.6% Fibonacci retracement . Our short-term bearish bias is further supported by the RSI indicator where a bearish divergence is spotted.

Trading Recommendation

Entry: 93.164

Reason for Entry:

61.8% Fibonacci projection and daily resistance

Take Profit: 91.358

Reason for Take Profit:

23.6% Fibonacci Retracement

Stop Loss: 93.762

Reason for Stop Loss:

100% Fibonacci projection