NZD/USD Bearish Engulfing Pattern Hints At Pullback To 0.8600
- NZD/USD Technical Strategy: Shorts Preferred
- Bearish Engulfingpattern opens drop to 0.8600
- 4 hour chart shows few signs of a potential bounce
The Kiwi may be set to continue its recent declines following the emergence of a Bearish Engulfing pattern on the daily. A pullback would likely be met by buying support at the psychologically-significant 0.8600 handle.
Daily Chart - Created Using FXCM Marketscope 2.0
Examining the four hour chart; an Evening Star pattern is further evidence that the most recent bull-run for the Kiwi has been exhausted. While the pair has found some support in intraday trade near 0.8640 the absence of a bullish reversal signal casts doubt over a potential bounce.
NZD/USD: Bears Return Following Evening Star Pattern
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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