Forex Strategy: NZD/USD Teases At Break of 2013 High
- NZD/USD Technical Strategy: Sidelines Preferred
- Bearish Engulfing pattern on the four hour chart warns of intraday declines
- Uptrend remains intact on daily cautioning against shorts
The Kiwi has stalled around the 0.8670 mark following several failed attempts at a run above its 2013 high. However, while the bulls may have taken a breather, the absence of a bearish reversal candlestick pattern on the daily does not suggest a meaningful correction at this stage.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the formation of a Bearish Engulfing candlestick pattern nearby the psychologically-significant 0.8700 handle is noteworthy. The signal has received confirmation from a successive down period but has received little follow through. A break below resistance-turned-support at 0.8640 is likely to open the 0.8600 handle.
NZD/USD: Warning of Intraday Declines From Bearish Engulfing 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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