Talking Points
- NZD/USD Technical Strategy: Longs Preferred
- Morning Star formation leads recovery in prices
- Break of resistance at 0.8600 opens further gains
The Kiwi has broken above critical resistance at 0.8600 in recent trading with the pair forming a Morning Star pattern. While admittedly a little lopsided, the bullish candlestick formation suggests an extended recovery for the pair. The push above prior resistance at 0.8635 opens an advance on the 2014 highs near 0.8740.
NZD/USD: Recovery Continues Following Morning Star Forms
Daily Chart – Created Using FXCM Marketscope 2.0
Examining the four hour chart reveals signs of hesitation from the bulls near the 0.8665 mark which has prompted the emergence several Doji formations.
NZD/USD: Bulls Pause As Dojis Form Near 0.8665
Four Hour Chart – Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.