NZD/USD Bullish Candlestick Pattern Puts 0.8740 In Focus
- 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. The push above prior resistance at 0.8635 opens an advance on the 2014 highs near 0.8740.
Daily Chart - Created Using FXCM Marketscope 2.0
Examining the four hour chart; reveals the emergence of a Shooting Star formation near the psychologically-significant 0.8700 handle. However, it may be too early to call for a correction, given the candlestick is yet to receive confirmation from a successive down period.
NZD/USD: Bulls Push Past Key Level In Intraday Trade
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.