CADJPY: Signs of trend exhaustion over daily studies

The CADJPY resumed its recovery inside pitchfork channel where it succeeded in flirting with the main medium-term resistance located in the 101.00 regions.

The above-mentioned level meets 61.8% Fibonacci retracement of the wave from 106.40 to 91.75 and it offered good resistance today, pushing the CADJPY lower.

cadjpy-daily-fxcomment-18-06-2015

We wrote earlier that, all eyes are on 99.50, but our sell stop order wasn’t activated and now, all eyes become on 101.30-101.50 areas, which should be the defensive level for renewed short positions.

By examining the RSI 14, we can see the probabilities of tracing a negative divergence, while the secondary image of the eight-hour chart reflect the strength of the resistance zones with bearish engulfing candlestick pattern.

Area between 99.30 and 99.05 could be the target; whilst 101.30-101.50 could act as ceiling according to you risk management plan.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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