As you can see a small trend line on the daily chart, every time it hits the resistance it comes back down to the trend line before going up again. For confirmation I shall wait for a few bearish signals including bouncing off the bollinger bands, hitting resistance and a swing high. If the USDCAD swings high short to 0.0112 and place a stop loss of 0.00741.
Please place trade at your own discretion.
I am fully aware indicators may not be the most reliable when it comes to trading, in this situation I am using the Bollinger bands and stochastic indicator.
Comment
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I have placed a sell order.
Short: 1.31593 SL: 1.3189 TP: 1.30117
Trade active
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Trade closed: stop reached
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Comment
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In this case USDCAD has been in an uptrend, if you had entered later and put the stop loss higher, shorting USDCAD would have made you profit.