We have a nice trading opportunity on this USDCAD TradingView chart and it’s the third valid setup within a few days on this pair!
The setup is valid because:
- There’s a divergence between the price, which is pretty much flat, and the RSI Exhaustion which is falling significantly
- The RSI Exhaustion is bullish exhausted, which means that the price doesn’t have too much room to move any higher
- We have a confirmed top
We set the stop loss a bit higher than the most recent highest price, and we set the target all the way down to the major support level displayed by the Levels and Zones, because we know from past experience that the price likes to test multiple times these major levels and so, if we expect it to fall, then there is a very high chance that it will, at least, touch the support level at the bottom.