Here we have a valid pattern potentially forming on FX:USDCAD daily time frame. Just by reading price action, we see this market is in strong . Keep in mind that there are still no signs of this pair slowing down just yet. Since the pattern is on the daily time frame the stop loss will not be suitable for every one, but we should be looking for any type of shorting opportunities on lower time frames with manageable stop loss levels, as the market reaches the 161.8% fib extension level. I personally will also be looking on lower timeframes to enter short near the 161.8% level. This market has been diverging very strongly on the , shown by the divergence on the chart under this description. See the chart above for more details.
NOTE #1: we got many high impact news events coming out this week. See the chart above for the list of these events.
NOTE #2: markets can still go higher even when diverging for long periods of time. Thus we need to see major structure levels break before taking divergence into account.
Illustration of strong divergence on weekly chart:
Illustration of completion point right at previous structure highs: