The price of CADJPY could continue lower this week in line with the risk off market. The price rejected the weekly midpoint and dropped offering short opportunities.
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The weekly chart for CADJPY is showing a lower high, lower low formation suggesting we could see the price continue to move lower in line with this higher time frame trend.
Last week’s bearish close shows the price forming an impulse phase in the trend which means we should start to see the daily form a down trend with lower lows and lower highs too.
In the week ahead analysis we highlighted the weekly midpoint of last week’s price action as an area of interest for short opportunities. The daily candle close yesterday was a strong bearish from this midpoint adding confluence to our move lower.
If this is going to be the lower high on the daily time frame we should see the lower time frame form a downtrend too.
Before looking at the 15 minute idea we can see that we have a limit order on the CADJPY daily midpoint. This is an area of interest if the market spikes up on the high impact CPI data we are going to see today. The price could rally, reject this point and continue lower.
15 Minute Chart
This 15 minute time frame is showing us that the price is breaking through the daily lows and the Asia session range. This can often lead to a move lower too in strong trending conditions.
If the price after the news rallies and forms a rejection of the lows or rallies and rejects the daily midpoint we could look for further shorting opportunities.
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