Talking Points
- NZD/USD Technical Strategy: Sidelines Preferred
- Piercing LinePattern Awaiting Confirmation
- Breach of 0.7730 Needed Open ’12 Low Near 0.7450
NZD/USD’s latest reversal pattern may see another limited response from traders as the pair struggles to meaningfully lift from the 0.7730 floor. A daily close below the nearby barrier would set the scene for a descent on the 2012 low near 0.7450.
NZD/USD: Another Reversal Signal Awaiting Confirmation
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A congestion zone appears to have formed between 0.7740 and 0.7907 in intraday trade. A medley of short body candles and a Doji formation suggests upside momentum may have stalled. However, with key reversal candlesticks lacking a correction is questionable.
NZD/USD: Dojis Highlight Hesitation Within “Congestion Zone”
Four Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency 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.