NZD/USD Bounce May Continue Post Morning Star Formation
- NZD/USD Technical Strategy: Sidelines Preferred
- Morning Star formation leads recovery in prices
- Break of resistance at 0.8600 opens further gains
The Kiwi has broken above critical resistance at 0.8600 in recent trading with the pair forming a Morning Star pattern. While admittedly a little lopsided, the bullish candlestick formation suggests an extended recovery for the pair. A push above nearby resistance at 0.8635 would open an advance on the 2014 highs near 0.8740.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; traders have looked past the Hanging Mancandlestick pattern following a bounce off support at 0.8550. With a reversal signal lacking in intraday trade, the pair may be set to extend its recovery to 0.8645.
NZD/USD: Bounces Off Support At 0.8550
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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