Forex Strategy: NZD/USD Bulls May Make Another Run Post Hammer Candle
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- NZD/USD Technical Strategy: Pending short
- Hourly chart hints at continued bounce post Hammer formation
- Nearby range top on the daily leaves the Kiwi at a critical juncture
The hourly chart for NZD/USD is hinting at a corrective bounce higher, given a Hammer candlestick formation and break above resistance at 0.8376. However, in the context of a continued range for the pair which is demonstrated on the daily, a rally would be seen as an opportunity to enter new short positions.
Critical resistance for the Kiwi remains at the 0.8400 level, which has been breached during intraday trade recently, yet a lack of conviction amongst traders has been unable to keep prices above the mark until the close. This leaves the pair at a critical juncture in the coming week, if the bulls make another run at the range top and we see daily close above 0.8400 it would suggest a breakout and offer a firm bullish bias.
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Hourly Chart (Times in AEDT) - Created Using FXCM Marketscope 2.0
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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