As we can see we are in a downtrend, however at the moment we are in a corrective phase of it, creating this rising wedge with a confluence of the 61.8 fib if we can reach the intersection of both trendlines this would be an optimum place for shorts and price would definitely react to this level even if it is not in our favour.
Patterns tend to repeat themselves. There is an interesting similarity happening here.
Bear in mind that the markets are random but do hold hidden patterns.
Caution and controlling loss are the big priorities. Positioning the next.
I'm stalking this situation very carefully. No predictions today or at any other time.
Disclaimers : This is not advice or...
USDJPY H4 - As mentioned, we have a lot of economic data coming up regarding the US over the next couple of days, this shall influence the USD a lot, effectively act as a catalyst to move USD markets, so do be aware of these points and keep an eye on timings! Lots of consolidation seen on UJ, could be exhausting, DXY broken support and setting LH's and LL's.
React off what the market gives you, don't predict the market. These are two scenarios which could happen and how I would approach a trade if it set ups accordingly. Personally, my bias is bearish as GBP should become very week over the next few months due to fundamentals. Second wave COVID probable as well as the possibility of any negative Brexit news for the UK...
Gold H1 - Saw a heavy gold selloff yesterday after rejecting that double top resistance. Caused a break of trendline and a support break too. A potential retest of resistance at 1953.00 could see us gear up for a possible second wave downside.
Price is in an overall downtrend, forming lower highs and lower lows and a third touch of this descending TL, usually when we have an impulsive move like we have, we tend to see a retracement into the 38.2 region or the 50 fib region, here we have a retracement to the 50% Fibonacci level and with what looks like is going to be a bearish engulfing candlestick, wait...
CAD/JPY is testing strong support level, it's likely to move upside from here.
Here is the Setup I am going with.
#164 CAD/JPY Buy Limit ♨️
TP 80.651 (28) —> 80.609 (23.9)
SL 80.271 (-10)
Good luck with this trade!