NZDCAD Short: Wolfe Wave + Expanding Triangle at 50% RetraceAfter the RBNZ announcement cancelled the last NZDCAD short, a new opportunity has presented itself. A bearish WW has formed with the touch of the 2-4 parallel confluent with the 50% retracement level. We also have a potential E point of an expanding triangle complete which may mark a larger reversal from these levels. On the daily chart, the pair is contained within a bearish expanding triangle and this could present an opportunity to ride it down toward point E on the larger TF. The unhit pivot for June 2016 presents a nice target at which to take profit.
Bearish Confluence:
Bearish Wolfe Wave complete
Expanding triangle
50% retracement level
Descending expanding triangle on daily TF
Unhit June, 2016 pivot below price
Bearish RSI Divergence
RSI Overbought
Again, be mindful of news events. It is a good idea to wait until the Poloz speech at 11:15EST for entry as this may present significant CAD volatility. Happy trading to all!
