The USDCAD has fired off a large Pin Bar Reversal on the 8hr price action chart. This pin bar reversal is a 2 bar reversal on the 4hr chart that when combined on the 8hr chart makes a valid pin bar. This pin bar is a large, obvious and meets the three basic criteria. It is also sticking out and away from all other price up at the high as is needed for bearish pin bars as discussed in the trading lesson Where Traders Go Wrong With the Pin Bar. This pin bar is rejecting a key daily resistance level that has been a proven resistance in the past and is also making a false break of the recent resistance level on the 8hr chart.
If price can break lower and confirm the pin bar by breaking the pin bars lows, the first near term support level would come in close below around the 1.08925 level. From there, if price can break and continue moving lower, there would then be more space to move into the recent swing lows. I discuss how important it is for price to confirm the pin bar before entry in the trading lesson Are Your Entries Hurting Your Trading Account | Using Confirmation
Important: If you want to learn how to change your MT4 charts so that you can make any time frame chart you want like the 8hr chart below, read here: MT4 Change Time Frame Indicator
USDCAD 4hr Chart
USDCAD 8hr Chart
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Fox thanks for sharing this setup man. I took the trade and TP in 2 days! Cheers to your high hit rate!