Forex Strategy - NZD/USD Eyes 0.8600 In Absence of Reversal Confirmation
- NZD/USD Technical Strategy: Sidelines Preferred
- Shooting Star fails to receive confirmation
- Absence of reversal signal may leave Kiwi to climb further
The Kiwi’s bull-run has continued in recent trading with the currency yet again brushing off a potential reversal signal offered by the Shooting Star formation on the daily that failed to receive confirmation. While the NZD/USD’s ascent may have encountered a hurdle near 0.8580 (the April 2013 high) caution is suggested when looking to ‘pick the top’ in light of the sustained uptrend for the pair.
NZD/USD: Ascent Continues
Daily Chart - Created Using FXCM Marketscope 2.0
The bounce hinted at in yesterday’s candlesticks report materialized with an advance towards the 0.8600 handle. While several successive Dojis on the four hour chart suggests the possibility of fading upside momentum, they are not enough to imply a potential a correction at this stage. However, in the event of a retracement of the pair’s recent gains, buyers may look to step in to support prices at the 0.8510 mark.
NZD/USD: Dojis Signal Intraday Indecision
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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