NZD/USD Correction Looms As Dark Cloud Cover Awaits Confirmation
- NZD/USD Technical Strategy: Pending Short
- Dark Cloud Cover on the daily warning of declines
- Morning Star formation offers conflicting signal
A Dark Cloud Cover formation has emerged for the Kiwi following a failure to crack the 0.8750 mark yesterday. The pattern awaits confirmation from a second down-day, which would open up a move towards the psychological 0.8600 handle.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; the Dark Cloud Cover formation noted in yesterday’s candlesticks report resulted in an intraday dip for the Kiwi. However, with a Morning Star pattern having now emerged there appears to be signs of fading downside momentum. A bounce would likely be met by sellers sitting at the 0.8700 handle.
NZD/USD: Morning Star Suggests Potential Bounce to 0.8700
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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