Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
The Cadjpy daily chart shows the pair trading in the buy zone after closing above the down-sloping trendline several days ago, and then moved back in for a retest at the 82.00 area. At this level, support was offered by the trendline and now the 83.70 resistance seems to be the first target being eyed by the bulls. Ahead of this area, marked by horizontal lines on the chart below, are 84.06, the September 17th high, which lies in the midst of significant past support, indicated by some impressive-looking spikes down into the area. 85.20 is where the 200 simple moving average lies, and it can be expected to offer resistance if the market were to test that point. Please note that there is a bullish channel that has been holding well for over two weeks. In line with the rules for channel trading, bounces that occur after the support is tested can be bought, and shorted at the top of the channel wall after confirmation signals.
My general outlook is bullish on the pair up to the first resistance area mentioned at 83.60s. It is important to watch for potential breakouts from the channel, but as long as it holds, it should offer predictable opportunities for trading.
Thanks a lot for reading. Successful trading to you! 🙂
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