We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Forex Strategy: NZD/USD Bulls May Make Another Run Post Hammer Candle

Forex Strategy: NZD/USD Bulls May Make Another Run Post Hammer Candle

2014-03-04 11:49:00
David de Ferranti, Currency Analyst
Share:

To receive David’s analysis directly via email, please SIGN UP HERE

Talking Points

  • 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.

Confirm your chart-based trade setups with the Technical Analyzer.

Forex_Strategy_NZDUSD_Bulls_May_Make_Another_Run_Post_Hammer_Candle_body_Picture_2.png, Forex Strategy: NZD/USD Bulls May Make Another Run Post Hammer Candle

Hourly Chart (Times in AEDT) - Created Using FXCM Marketscope 2.0

Forex_Strategy_NZDUSD_Bulls_May_Make_Another_Run_Post_Hammer_Candle_body_Picture_1.png, Forex Strategy: NZD/USD Bulls May Make Another Run Post Hammer Candle

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by David de Ferranti, Market Analyst, FXCM

Contact and follow David on Twitter: @Davidde

New to FX? START HERE

For live market updates, visit the Real Time News Feed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.