USDCAD Pulls Back to Trendline, Setups Short Opportunity

USDCAD has been in a downtrend since March 20th of this year; that is when the current trendline, visualized in this chart, commenced. Price has pulled back to this trendline, is just below the 50 SMA and the 200 EMA, and not too short of the 50% retracement line from the recent swing high to swing low. The candlesticks over the past few daily trading sessions also suggest that price is in an accumulation or distribution pattern, getting ready to breakout. In light of the trendline, I'm speculating on a break downwards.

As such, I'm short USDCAD at 1.0728, with my stop at 1.0776. I'm risking 48 pips to reach my target of 1.0558, 170 pips away, and so my reward/risk is approximately 3.54.

Also worth noting is the signs of CAD strength visible on other pairs; I prematurely took profits on my short GBPCAD trade, and am currently long CADJPY.

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