Double Bottom On CADJPY
FХ Strategist & Financial Commentator
During the last two weeks, this pair has built a bullish base around 74/76 area testing the major support on the bottom area set on 2008,2011 and 2016 as we can see on the monthly chart.
The double-bottom formation was confirmed by yesterday’s bullish session, when the quotes accelerate towards 76.50 area.
The average true range is currently nearby the top of the last 5 years, and as we can see, the volatility peaks tends to anticipate the most important rising swings of the Canadian dollar.
Looking at the RSI indicator, we can see a precise bullish divergence, that represent an ulterior confirm of the double bottom setup, anticipating the possible acceleration of this pair.
In this case, the setup is already activated with the quotes that are currently working over yesterday’s top around 76.60 area, with a stop loss to place at 73.50 below the bottom of the last two weeks. The target price on the other hand would be set around 79.30 where we can detect the previous support area set on August and September 2019.
As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to Nbh YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.