NZD/USD Set For Next Leg Lower As Dojis Fail To Stir The Bulls
- NZD/USD Technical Strategy: Shorts Preferred
- Dark Cloud Cover heralded correction in prices
- Dojis suggest some hesitation by traders near 0.8600
The break below 0.8600 for NZD/USD has been met with little downside follow-through thus far. The indecision amongst traders near the key technical level is made evident by a series of Doji candlesticks. Given the Dark Cloud Cover pattern on the daily, until a bullish reversal signal emerges the downside is preferred.
NZD/USD: Break Below 0.8600 Opens Bearish Bias
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; the recent consolidation is made further evident. A break below nearby support at 0.8540 would likely see some buyers step in at the psychologically significant 0.8500 handle.
NZD/USD: Signs of An Intraday Bounce Limited
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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