Happy Monday Steemians! This week I have the CAD on my watchlist. This pair in particular is interesting as we have a 6 month bearish trend that has came to and end and began to consolidate. Within the consolidation we have a bearish Butterfly pattern. Price is overobught and also showing bearish divergence. I am taking a bearish entry as the Daily chart i expect will close with a bearish inverted hanging man- a sign of a bearish reversal.
Within the next 24 hours we will have the release of the NZD Trade Balance. It is expected to increase on last month by 321 Million. Should this fall below consensus, we will see a rapid drop. Should the trade balance come out as expected (or higher) I will re-assess the position. The effects of the inverted hanging man at 0.9 can be seen below. This, along with the trade balance announcement, could be a great position for a bearish entry.
Good luck to everyone who takes this position!