NZD/USD Eyes 0.8500 As Dark Cloud Cover Dominates
- NZD/USD Technical Strategy: Shorts Preferred
- Dark Cloud Cover heralded correction in prices
- Buying support likely rests at the 0.8500 handle
The Kiwi is eyeing critical support at the 0.8500 handle with the Dark Cloud Cover formation on the daily dominating price action. The Gravestone Doji candlestick near 0.8560 failed to invigorate the bulls with sellers around the 0.8600 keeping gains constrained for the pair. With an absence of a bullish reversal pattern still absent on the daily, further declines look likely.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; there are few signs of a potential bounce over the remainder of the session. However, a Doji candlestick near 0.8500 signals some hesitation from the bears to push prices below the key support level.
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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