Remember the 84.50 resistance area on CADJPY?
I pointed out this area on the 25th of February.
The reason I continue to like the 84.50 area is that it’s the former ascending channel support that extends from the 2016 low.
You may recall how this former channel support triggered the 600-pip selloff last December.
As we know, old support becomes new resistance.
That means this weeks retest of 84.50 was likely to encounter selling pressure.
Here’s the weekly chart I posted this past Monday:
CADJPY did manage a high of 85.23 on Friday, but it turned out to be the last gasp from bulls.
I sold the pair at 85.06 which I announced in the member’s area.
As for key support on the way down, there is an area at 83.80 that could attract a few buyers.
However, if sellers can follow through on this bearish rejection candle, there isn’t much in the way of support until the 82.00 area.
Below that we have the lows from April 2017 and March 2018 at 80.55.
Given how choppy CADJPY has been this year, I wouldn’t be surprised to see another retest of the 84.50/60 resistance area next week.
But as long as this new resistance at 84.50/60 is intact on a daily closing basis, I will stay bearish CADJPY.
Enjoy your weekend everyone.
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IMPORTANT: I use New York close charts so that each day closes at 5 pm EST.
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