NZD/USD Reversal Underway Post Shooting Star
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- NZD/USD Technical Strategy: Shooting Star favors shorts
- Possible targets offered at psychologically-significant levels
- SSI shifts from bullish to mixed bias based on sentiment change
As noted in the most recent Kiwi candlesticks report; the formation of a Shooting Star candlestick on the daily was warning of a potential decline for the currency. With the ensuing fall for the NZD/USD and a successive down day for the pair there is an indication that a more meaningful reversal may be underway.
Potential targets to the downside are offered by psychologically significant levels with the close-by 0.8300 handle having provided support during intraday trade.
It is also noteworthy that the DailyFX Speculative Sentiment Index has actually shifted from a bullish to a mixed bias as shorts positioning amongst retail traders has declined.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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