Forex Strategy: NZD/USD Aims At 0.8635 Following Doji on Daily
- NZD/USD Technical Strategy: Sidelines Preferred
- Bearish engulfing pattern on the daily negated
- Uptrend remains intact cautioning against shorts
The Kiwi’s uptrend remains intact with prices holding above their 20 SMA following a test of key support at the 0.8500 handle and a Doji formation. The Bearish Engulfing pattern noted on the daily has now been negated, which follows on from several Shooting Star formations that were also overlooked by traders as potential reversal signals. A break above the 2014 high near 0.8635 may open up 0.8830 (see weekly).
Daily Chart - Created Using FXCM Marketscope 2.0
The presence of a Piercing Line formation near noteworthy support at 0.8510 prompted a bounce for the Kiwi. With traders pushing prices above the 0.8600 mark in intraday trade, and advance towards the 2014 highs near 0.8640 looks possible.
NZD/USD: Bounces Post Piercing Line Pattern
Four Hour Chart - Created Using FXCM Marketscope 2.0
The Gravestone Doji on the weekly has failed to receive confirmation from a successive down period. With prices in a continued uptrend a break above 0.8665 would favor longs with a target near resistance at 0.8830.
NZD/USD: Look past
Weekly Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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