Forex Strategy - NZD/USD Shrugs Off Reversal Signal to Climb Higher
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- NZD/USD Technical Strategy: Longs remain preferred
- Upside breakout eyes previous highs near 0.8545
- Absence of bearish reversal signal suggests extended gains
The Kiwi bulls have taken charge following NZD/USD’s break above prior range-top resistance near 0.8400. The pair has seemingly shrugged off earlier bearish reversal signals and suggests some caution is needed in interpreting the most recent Shooting Star formation that has been posted on the daily. Against the backdrop of a prevailing uptrend (signaled by the 20 SMA), it is still too early to suggest a meaningful correction for the New Zealand Dollar leaving a continued preference to the upside.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
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