Forex Strategy - NZD/USD Shooting Star Forms - Third Time's The Charm?
- NZD/USD Technical Strategy: Sidelines Preferred
- Shooting Star offers bearish reversal signal but awaits confirmation
- Looking to 0.8500 as key support
The NZD/USD has erased most of yesterday’s gain following a failure to break above the October 2013 highs near 0.8545. This has resulted in a Shooting Star formation for the pair that may be hinting at a bearish reversal. However, caution is suggested here, given the Kiwi has shrugged off 2 prior reversal signals offered by Shooting Stars near key resistance levels. A daily close back below the 0.8500 handle may help validate the signal and could open up a larger correction to the former-range top at 0.8400.
NZD/USD: Shooting Star Awaits Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.