CADJPY Local S/R| Swing High| Bearish Retest| Price Action

21 jan. 2021Evening Traders,

Today’s analysis – CADJPY- trading below local S/R where further downside is probable,

Points to consider,
- Price Action Impulsive
- Local S/R Resistance
- .618 Fibonacci Confluence
- Oscillators bearish control
- Lower Local S/R Objective

CADJPY’s immediate price action is trading under local S/R that is in confluence with the .618 Fibonacci, allowing for a bearish bias.

The oscillators are both trading in their respective bearish control zones, indicative of weakness in the market.

The Lower Local S/R is objective, exceeding the level increases the probability of further downside.

Overall, in my opinion, CADJPY is a valid short with defined risk, price action is to be used upon discretion/ management.

Hope this analysis helps

Thank you for following my work

And remember,

“The core problem, however, is the need to fit markets into a style of trading rather than finding ways to trade that fit with market behavior.” – Brett Steenbarger