Forex Strategy: NZD/USD Bulls Struggling Ahead of Key 0.8600 Level
- NZD/USD Technical Strategy: Sidelines Preferred
- Doji signaled indecision near key 0.8700 handle
- Test of 0.8600 mark prompts bulls to take a breather
The Kiwi bulls have returned following a brief retreat towards key support at the 0.8500 handle. However, we’re left to question how much steam the recovery has, given a bullish candlestick pattern did not precede the bounce. There is also notable selling pressure sitting around the psychologically-significant 0.8600 level, which may restrain further gains for NZD/USD.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the importance of the 0.8600/05 mark is further reinforced, given that it has acted to cap gains for the pair during Asian trading today. Yet a reversal pattern remains absent at this stage, which suggests the bears may remain in hiding for the time-being.
NZD/USD: Bears Await Reversal Pattern
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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