The #USDCAD price could continue to trend higher as the #USD continues to strengthen. This can offer some long opportunities in the long and short term.
We’re looking at USD/CAD as the price could continue to the upside.
The price is currently breaking through the daily high, which will give us a potential trading opportunity. We are looking for long opportunities because the price went back into a previous structure area and found support. We took a long position down to 1.2640 if I get the 1.2465. That was the weekly low in the weekly timeframe.
The US Dollar is pretty strong at the moment. With the Federal Reserve looking to hike interest rates in 2022, we could expect more upside for the US Dollar.
The CAD is one of the currencies that are feeling the pain against the US Dollar strength. So, I’m expecting a continuation of the overall trend. The price found support down. I’m expecting the continuation up to the 1.2465 level. If the price breaks out of that level, then we can look for the market to continue upside after a retracement and a retest of that level.
The daily timeframe shows the price in an uptrend forming higher highs and higher lows. The price could head towards the major swing level at 1.2465. If the price breaks above this level, we can look for the long term trend to continue.
In the 15-minute timeframe during the Asia session, the price is breaking out of the highs. We want to identify where the overall direction of the daily chart is going and understand what happens within the daily.
We’ll likely see the market trend on a lower timeframe. So, the Asia session is a good time to buy. The 1.2403 level is the one to watch because we can look for the price to trade above to confirm the breakout.
We can wait for the price to go back down and retest the Asia session high then look for a long intraday opportunity, in line with bullish reversal setups. If the session highs get retested, look for reversal patterns like double bottoms or inverse head and shoulders for a trading opportunity.
In the 15 minute timeframe and the Asia session, the price is trading above the range which could lead to further upside. If the price retests the highs and forms bullish a price action, we can look for a short-term long opportunity.
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