Forex Strategy: NZD/USD Traders Hesitant As Doji Forms Near 0.8700
- NZD/USD Technical Strategy: Sidelines Preferred
- Absence of bearish reversal pattern precludes correction at this stage
- Uptrend remains intact on daily cautioning against shorts
The Kiwi continues to tease at a breakout above the 0.8700 mark following several failed attempts by the bulls to maintain the currency above its 2013 high. While a Doji candlestick suggests some indecision amongst traders, the absence of a bearish reversal candlestick pattern precludes a meaningful correction at this stage.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; strong selling pressure remains evident near the psychologically-significant 0.8700 handle. However, similarly to the daily chart signs of a pullback are lacking for the present moment.
NZD/USD: 0.8700 Remains Critical Resistance In Intraday Trade
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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