CADJPY testing major resistance, potential to drop further!

29 mar 2018

CADJPY tested its major resistance at 82.764 (100% Fibonacci extension x2, 76.4% Fibonacci retracement) where it has the potential to fall to its 1st support at 82.074 (100% Fibonacci extension, 61.8% Fibonacci retracement, 76.4% Fibonacci retracement, 50% Fibonacci retracement, 38.2% Fibonacci retracement, horizontal overlap support). If it breaks past this level, it could fall to its next support at 81.684 (61.8% Fibonacci retracement, 76.4% Fibonacci retracement, horizontal swing low support). We have also identified another resistance level at 83.398 (horizontal swing high resistance).

Stochastic (89, 5, 3) reacted off its resistance at 95.4% where a corresponding drop could occur. Bearish divergence with price has also been identified which contributes to our bearish bias.