BEARISH PLAY FOR USDCAD

STOP LOSS: 1.3023
TAKE PROFIT: 1.24245
Risk-reward: 2.56

Longer term trend: BEARISH
Current trend: BULLISH

General comments:
USDCAD has been bearish since end 2016. Huge drop followed by a 50-61.8% bullish retracement. Subsequently, another lower low was made and we are in a short term bullish uptrend. Price face strong resistance at the 1.29 mark, which coincides as the 50% fibonacci level.

What I like:
1) With the long term trend. If price hit the shorter term target, and price breaks lower to continue with another bearish movement till about the 1.20 mark, the trade will be very profitable.
2) Excellent R-R
3) Excellent bearish engulfing, with close being at the lower 7/8th of the bar.

What I dislike:
1) Price seems to be moving not in favor at present, signalling the possibility that the trade will not be triggered.

Other things to note:
Optimal entry would be a few pips below the bearish engulfing bar. Entry any earlier will be considered premature.

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x,
iskfx