Monday, June 15, 2020

Bullish Setup On CADJPY

Marco Tosoni

FХ Strategist & Financial Commentator

After a consolidation between March and April when this pair has built a triple maximum followed by a drop and a new test of the bottom area around 75.00 in the first part of May, the last month was characterized by a strong rise towards 82.00 area, before a fast technical correction over the past week, particularly on last Thursday’s.

During the Friday’s session, by the way, we had a convincing bounce bringing the quotes towards 79.50 area with a daily closure at 79.00.

Looking at the RSI indicator, we can detect a bullish setup, that combined with the test of the important price area around 78.00 should anticipate a further rising swing towards the tops set on last week. While the Average True Range, after a sharp drop, is rising again over the past 3 weeks so in my opinion this pair will be pretty active during the next trading sessions.

The setup would be activated in case of a breakout of Friday’s top at 79.50. The stop loss could be placed at 77.50 area below the triple top set between March and April, while the target price can be expected around 81.50 nearby the top’s area set on last week.

As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.

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