NZD/USD At A Critical Juncture As Hammer Awaits Confirmation
- NZD/USD Technical Strategy: Sidelines Preferred
- Hammer awaits confirmation near critical support
- Bearish Engulfing pattern may see limited response
The 0.8600 handle continues to offer noteworthy support for the New Zealand Dollar. While prices crossed below the critical support level in intraday trade yesterday the bulls returned in force resulting in a Hammer formation on the daily. While considered a bullish reversal signal, the pattern has yet to receive confirmation from a successive-up day which leaves the Kiwi at a critical juncture in the session ahead.
NZD/USD: 0.8600 Continues To Support Prices
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; there are already signs of hesitation from the bulls as demonstrated by the Bearish Engulfing pattern. Given the proximity to support at 0.8600/05 we need to see some additional price action to help confirm a technical bias over the remainder of the week.
NZD/USD: Awaiting Further Signs Near 0.8600
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.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.