Friday, September 29, 2017

USD/CAD Could Possibly Form A Doji Bar On The Monthly Time Frame

As I thought it would, USD/CAD reached 1.2450 and it even rose above that level to 1.2470 and in that zone it formed its first small correction, visible on the D1 time frame, before it tested and attempted to break out above 1.2500. At the moment the pair is trading little above 1.2500 and if the breakout is successful and the pair remains above that level, it will rally to 1.2550 – 1.2600.

More importantly, September is all but over and how the market closes today will be vital for how the monthly bar will close.

What we can see on the monthly time frame is a doji bar which has a serious chance to close above the support I’ve marked with a thick blue line.

Further back there is another doji bar that has closed at the same level.

I think that we can expect a continuation of the move to the upside, but up to where – that can be considered after we see how the monthly bar closes.