Forex Strategy - NZD/USD Breaks 0.8600 In Absence of Reversal Confirmation
- NZD/USD Technical Strategy: Longs 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 0.8635 caution is suggested when looking to ‘pick the top’ in light of the sustained uptrend for the pair.
NZD/USD: Ascent Continues As Reversal Signal Absent
Daily Chart - Created Using FXCM Marketscope 2.0
Delving deeper into intraday price action, there is a hint of a correction for NZD/USD with a Dark Cloud Cover candlestick pattern forming on the four hour chart. However, the extent of declines may be limited against the backdrop of a sustained uptrend on the daily that has yet to receive a bearish reversal signal.
NZD/USD: Clouds Gather In Intraday Trade
Four Hour Chart - Created Using FXCM Marketscope 2.0
It should be noted that the upcoming FOMC March meeting offers substantial fundamental event risk for the US Dollar. The price action resulting from the decision may negate technical signals offered. Traders can watch live coverage of the event in the DailyFX Plus area of the site.
By David de Ferranti, Market Analyst, FXCM
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.