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CADJPY’s strong rebound from the 73.76 low on March 09 seems exhausted, based on the RSI (14) reading.
The pair has not yet filled the long-term descending regression channel range at the upper trendline near 83.00. However, the miss of the 82.00 round resistance on June 05 raises the chances of a July decline.
Shorts at the 81.90 area provide a short-term descending regression channel that limits potential long bets at the upper trendline near 81.00.
A minor breakout of the 79.88 R1 resistance will make room towards the said level. A breakout of the short-term channel, however, will provide an initial base for a higher top at the long-term channel’s trendline near 83.00, as indicated in the chart below. Both can be expected.
With sentiment mixed, the current structure can be characterized by a flatness. Both sides of the sideways market are prone to a breakout.
The lower side of the range at the median regression trendline illustrates a strong bottom. While short bets are...
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