Forex Strategy: NZD/USD May Extend Gains Beyond 2013 High
- NZD/USD Technical Strategy: Sidelines Preferred
- Bearish engulfing pattern on the daily negated
- Uptrend remains intact cautioning against shorts
As noted in yesterday’s candlesticks report, the Doji on the daily suggested the bears had gone into hiding and a run on the 0.8635 mark was possible. The Kiwi’s gains may be set to continue with the currency now pushing on its 2013 highs and a bearish reversal signal lacking on both the daily and weekly timeframes.
Daily Chart - Created Using FXCM Marketscope 2.0
As per the four hour chart below the presence of a Piercing Line pattern near noteworthy support at 0.8510 prompted a bounce for the NZD/USD. With traders pushing prices towards the 0.8640 mark during the Asian session, an upside breakout may open an advance on 0.8830 (see weekly).
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: Traders Look Past Gravestone Doji
Weekly Chart - Created Using FXCM Marketscope 2.0
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.