NZD/USD Recovery Falters As Hanging Man Forms
- NZD/USD Technical Strategy: Shorts Preferred
- Dark Cloud Cover dominates price action
- Dojis suggest some hesitation by traders near 0.8600
While the Kiwi has staged a small recovery in recent trade, the pair continues to struggle below critical resistance at 0.8600. Given the Dark Cloud Cover pattern on the daily, until a bullish reversal signal emerges the downside is preferred.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; a Hanging Man candlestick has received confirmation suggesting the potential for continued declines on a break below nearby support at 0.8550.
NZD/USD: Recovery Falters As Hanging Man Forms
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.