NZD/USD Hanging Man Warns of Correction After Probing Above 0.8700
- NZD/USD Technical Strategy: Sidelines Preferred
- Rally stalls following test of critical 0.8700 handle
- Hanging Man in intraday trade warns of a correction
The Kiwi bulls pushed prices to a new 2014 high in Asian trading today. However, the bears look to be re-emerging with a Shooting Star potentially forming on the daily. It should be noted of course that the candle has yet to close and receive validation from another period – but it is certainly on the radar.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; a Hanging Man formation near the critical 0.8700 handle offers an ominous warning. Confirmation from the close of a successive down period for the bearish reversal signal could open a correction back towards 0.8600.
NZD/USD: Bears Emerge Following Test of 0.8700
Four Hour 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.