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NZD/USD Dark Cloud Cover Forms After Setting New 2014 High

NZD/USD Dark Cloud Cover Forms After Setting New 2014 High

David de Ferranti, Currency Analyst

Talking Points

  • 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.

NZD/USD: Sets New 2014 High Following Break of 0.8700

NZDUSD-Dark-Cloud-Cover-Forms-After-Setting-New-2014-High_body_Picture_2.png, NZD/USD Dark Cloud Cover Forms After Setting New 2014 High

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

NZDUSD-Dark-Cloud-Cover-Forms-After-Setting-New-2014-High_body_Picture_1.png, NZD/USD Dark Cloud Cover Forms After Setting New 2014 High

Four Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Follow David on Twitter: @Davidde

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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