CAD/JPY - Bearish Gartley
Updated
Hey guys, back on the charts this week! Today I am looking at a bearish Gartley position on the cad-yen.
Oil has been rallying since June last year and is currently at a point of making a higher low. Should this turn out to be a level of resistance rather than just a higher low then we may see further decline for the value of the Canadian Dollar. Furthermore we are also awaiting this month's release of the Japanese interest rate, which is expected to remain at -0.1%. Their trade balance is also expected to have dropped by 219B.
With this pair we can clearly see on the daily chart that price has made created a new low, finding support before bouncing. We are now at a point where we are creating a lower high and testing a level where we have had previous support. As a result, this may be a key area to scope a short entry. On this occasion our risk:reward will likely be 1:2 as we are trading the Gartlery pattern- the entry points noted may be subject to change as per price action. We will also be using our 2 levels for TP1 and TP2 at the 0.382 and 0.618 levels respectively.
Gartley ratios are as follows:
B: 0.618
C: 0.382 - 0.886
D: 1.272 - 1.618
X-D: 0.786
Oil has been rallying since June last year and is currently at a point of making a higher low. Should this turn out to be a level of resistance rather than just a higher low then we may see further decline for the value of the Canadian Dollar. Furthermore we are also awaiting this month's release of the Japanese interest rate, which is expected to remain at -0.1%. Their trade balance is also expected to have dropped by 219B.
With this pair we can clearly see on the daily chart that price has made created a new low, finding support before bouncing. We are now at a point where we are creating a lower high and testing a level where we have had previous support. As a result, this may be a key area to scope a short entry. On this occasion our risk:reward will likely be 1:2 as we are trading the Gartlery pattern- the entry points noted may be subject to change as per price action. We will also be using our 2 levels for TP1 and TP2 at the 0.382 and 0.618 levels respectively.
Gartley ratios are as follows:
B: 0.618
C: 0.382 - 0.886
D: 1.272 - 1.618
X-D: 0.786
Note
As you can see from the daily chart, we are now approaching previous support. I will re-assess the pattern once price reaches our potential reversal zone.
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