NZD/USD Recovery Falters Leaving A Void Of Bullish Candlestick Signals
NZD/USD Technical Strategy: Pending Short
Piercing Line Pattern Fails To Find Follow-Through
Daily Close Below 0.8060 To Open Aug ’13 Lows
NZD/USD has resumed its journey lower in recent trade, which in turn has negated a Piercing Line pattern on the daily. As noted in recent reports the potential for a sustained recovery was questionable against the backdrop of a core downtrend. A daily close below the 0.8060 hurdle could open some significant room before buying interest is renewed at the August 2013 low near 0.7750. Whereas, a climb above the 0.8260 hurdle would likely be required to mark a small base for the pair.
NZD/USD: Piercing Line Pattern Fails To Generate Follow-Through
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour timeframe offers greater hopes for a recovery for the Kiwi. A Harami pattern alongside a push beyond intraday resistance (now support) at 0.8120 hints at further gains over the session. Yet within the context afforded by the daily, selling into rallies remains preferred.
NZD/USD: Selling Into Rallies Preferred Within The Context Of A Downtrend
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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