Good risk-reward opportunity on USDCAD 1:2
1. Price managed to break weekly support (now weekly resistance) and broke also upward weekly trendline, which hadn't broke since february 2018.
2. Price came pushed back up to retest the weekly resistance + trendline, being unable to break it to the upside, showed by various wicks and high volume bearish candles.
3. After 3 daily retests of this zone, price finally was rejected yesterday with a considerable bearish engulfing candle, leaving a nice wick too, confirming short entry.
Take profit: suggest to take partial profits at next daily support zone around 1.31470, due to possibility of retracement, and let the position run risk free until next take profit level around 1.30270, which is the next daily support zone.
Stop loss: above the support zone and the maximums price did: around 1.33600.
**This is a risky trade regarding dollar uncertainty due to the trade war and the FED lowering further or not interest rates.
1. Price managed to break weekly support (now weekly resistance) and broke also upward weekly trendline, which hadn't broke since february 2018.
2. Price came pushed back up to retest the weekly resistance + trendline, being unable to break it to the upside, showed by various wicks and high volume bearish candles.
3. After 3 daily retests of this zone, price finally was rejected yesterday with a considerable bearish engulfing candle, leaving a nice wick too, confirming short entry.
Take profit: suggest to take partial profits at next daily support zone around 1.31470, due to possibility of retracement, and let the position run risk free until next take profit level around 1.30270, which is the next daily support zone.
Stop loss: above the support zone and the maximums price did: around 1.33600.
**This is a risky trade regarding dollar uncertainty due to the trade war and the FED lowering further or not interest rates.