Thursday, October 6, 2016

CadJpy At 78.5!. What next?

In the last updates, we forecast a corrective rally for Cadjpy to 78.5 after a bearish impulse move. We even gave a trade recommendation to buy to 78.5 prior to the Oil producers' meeting in Algiers.

Price rallied to 78.5 and we think a bearish move may re-surface.



The chart above shows that the correction is a zigzag pattern which may complete just beneath the falling trendline.

If price is well resisted  below 78.9 and falls below the rising trendline78.5, we may have a strong reason to short cadJpy for the continued bearish move.

If price pierce the falling trendline powerfully, we may see more upside move.

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