Cabana Capitals Blog Market Insights CHFJPY: Pair is falling down with double top pattern

CHFJPY: Pair is falling down with double top pattern

CHFJPY: Pair is falling down with double top pattern post thumbnail image

Overview:-By analyzing the daily technical chart we can see that pair is falling down and heading south side. Bears are taking the control on the pair and playing at the front foot, the way bears are reacting it seems like they are approaching the 146.00 level. Recently it marked a low of 145.60 and then again bounced back to 149.10 level. Now it has turned back to 145.00 now it seems like bears will test the previous low of 142.88 level.  As we can see that a pair of bearish marabuzo candlesticks has been posted on the chart which indicates us to sell the pair.

Technical Analysis:- From technical prospective we can see that a double top pattern has been formed which is providing us bearish signal pair is trading below all the major and minor EMA lines.

Odds are in favor of bears. Intraday bias remains bearish on the pair. The MACD indicator is also favoring the bears and still providing us bearish crossover.  RSI is providing bearish signal from negative territory. The 145.30 level is immediate resistance level followed by 144.00 whereas 141.00 levels is strong key support level followed by 140.00 level. A valid breakout of the 150.50 level will give us trend reversal signal and we may see buying as long as this levels remains intact go for short.

Trade idea:- The present picture suggests us that sell at the current levels i.e. 143.50 for the target of 140.00 and 138.00 with the tight stop loss of 146.80 level

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