I came across this set up while showcasing reversal patterns with new traders.
There are just TOO MANY signs to ignore!
This is the perfect set up in many ways... especially for educational purposes!
Let's see how this plays out!
All trade ideas shared are for educational purposes only.
You've got this!
This is on the daily time frame. Nobody can predict where price will go or how far it will go in any direction.
This means that if one is shorting or going long on this position, one has to expect losses. I always keep losses at the forefront of all my posts.
I cannot predict what will happen next. People often ask me for targets. I don't do targets.
I think that the price will have a short-term correction move, will touch the TL, and move back up.
There is a huge divergence on MACD and RSI that leads me to think that the long term (D) resistance breakout will happen very soon!
. There is still a possibility of temporary retracement to suggested resistance line (77.05). if so, traders can set orders based on Price Action and expect to reach short-term targets.
. CADJPY is in a range bound and the beginning of downtrend is expected.
.The price is above the 21-Day WEMA which acts as a dynamic...
CADJPY in an overall downtrend. Respecting the trend line on the 4H Chart, missed the perfect entry but I am going short with a slightly bigger SL than usual as I think it will retest and continue to the downside.
. There is a possibility of temporary retracement to suggested support line (76.0). if so, traders can set orders based on Price Action and expect to reach short-term targets.
. CADJPY is in a range bound and the beginning of uptrend is expected.
.The price is above the 21-Day WEMA which acts as a dynamic support.
We have seen a nice bearish setup buliding on this pair on the daily time frame as well as smaller time frame. We may see a temporary retracement upwards before pushing down. I have placed the sell order accordingly and marked the tp and sl for you as well.
Let me know your thoughts.
Trade safe and good luck.