Talking Points
- NZD/USD Technical Strategy: Sidelines Preferred
- Shooting Star potentially forming on the daily
- Dark Cloud cover suggests potential for intraday dip
The Kiwi bulls pushed prices to a new 2014 high in Asian trading today. However, the bears look to be re-emerging with a Shooting Star potentially forming on the daily. It should be noted of course that the candle has yet to close and receive validation from another period – but it is certainly on the radar.
NZD/USD: Sets New 2014 High Following Break of 0.8700
Daily Chart – Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; the Hanging Man formation noted in yesterday’s candlesticks report resulted in an intraday dip for the Kiwi back to support at 0.8645. However, the pattern failed to result in a more material correction. The emergence of a Dark Cloud Cover reversal signal is now on the radar, which may be signaling the potential for some weakness ahead. Buying support likely rests nearby at the former resistance-turned support level at 0.8700.
NZD/USD: Dark Cloud Cover Offers Warning
Four Hour Chart – Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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