Forex Strategy: NZD/USD At A Critical Juncture Near 2014 High
- NZD/USD Technical Strategy: Pending Long
- Make or break moment ahead with a test of 2014 high
- Bearish reversal signal still absent, putting doubt on correction
The Kiwi bulls have returned following a brief retreat towards key support at the 0.8500 handle. While a pause at the critical 0.8600 mark cast doubt over the potential for further gains, the pair has managed to push above the resistance level for a test of its 2014 high. This leaves NZD/USD at a critical juncture in the session ahead. Traders should be on the lookout for a potential breakout opportunity in the absence of a bearish reversal pattern at the 0.8670 mark.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the parabolic rise of the Kiwi following the break above key resistance at 0.8600 is evident. While a Shooting Star candlestick pattern appears to be forming, it would need to close and receive confirmation from another down period before being validated.
NZD/USD: Bulls Run on 0.8700 Handle With Bearish Pattern Missing
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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