This week we’re going to follow up on a pair which we looked at last week. At the time of the analysis, price had formed the doji with a small real body as shown in the chart. Our course of action was to wait for price action to guide us, since we were at a minor resistance level. A breakout occurred, one that did not have a pullback because they also don’t happen all the time.
Bulls are dominant as they’re rallying the price. An inside bar formed signaling a continuation and price did continue bullish. It looks like if they (bulls) maintain the momentum, we might be headed for the major level.
The Dollar vs the Loonie has been on an uptrend since the beginning of the year on the daily timeframe. Currently price is consolidating within an ascending triangle. Where the upper boundary is acting as a resistance zone as shown.
At this moment, we are waiting for a break out. Usually an ascending triangle breaks out on the upside, but it is not guaranteed, nothing in the forex market is. Our bias will shift to bullish if there is a break and close above. Otherwise we will monitor the pair and talk bearish if it breaks and closes below the trend line.