NZD/USD Eyes Further Gains Following Bullish Candlestick
- NZD/USD Technical Strategy: Longs 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.
Traders should be mindful of the potential for a surprise US Non-Farm Payrolls reading in the coming hours to spark significant volatility for US Dollar based pairs. The release of the figures will be covered live in DailyFX Plus.
Daily Chart - Created Using FXCM Marketscope 2.0
Examining the four hour chart reveals signs of hesitation from the bulls near the 0.8635 mark which has prompted the emergence of an Evening Star formation. While typically considered a bearish reversal signal, it has failed to receive confirmation which precludes the suggestion of a correction at this stage.
NZD/USD: Evening Star Suggests Selling Pressure Near 0.8635
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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