NZD/USD Dark Cloud Cover Forms After Setting New 2014 High
- NZD/USD Technical Strategy: Sidelines Preferred
- Shooting Star potentially forming on the daily
- Dark Cloud cover suggests potential for intraday dip
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 the four hour chart; the Hanging Man formation noted in yesterday’s candlesticks report resulted in an intraday dip for the Kiwi back to support at 0.8645. However, the pattern failed to result in a more material correction. The emergence of a Dark Cloud Cover reversal signal is now on the radar, which may be signaling the potential for some weakness ahead. Buying support likely rests nearby at the former resistance-turned support level at 0.8700.
NZD/USD: Dark Cloud Cover Offers Warning
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.