Reversal at resistance

FX:USDCAD   U.S. Dollar / Canadian Dollar
Lower highs are being formed as can be seen on the daily time frame

Flipping to H4 I noticed a bearish engulfing bar that perfectly tested the resistance level . Given the major resistance holding strong this sell signal is somewhat significant.

For this type of setup the stop is best placed above the engulfing bar where the setup is deemed invalid and the target must be at least 2x the risk. When looking on the higher time frame, its noted that the potential for a bearish move much more than the initial target is very likely.

Don't invest what you can't afford to lose. This is not investment advice. Subjective view/report of a financial product only.

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