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NZD/USD Bearish Engulfing Pattern Hints At Pullback To 0.8600

NZD/USD Bearish Engulfing Pattern Hints At Pullback To 0.8600

2014-05-08 11:49:00
David de Ferranti, Currency Analyst
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Talking Points

  • 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.

NZD/USD: Targeting 0.8600 After Key Reversal Signal

NZD/USD Bearish Engulfing Pattern Hints At Pullback To 0.8600

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

NZD/USD Bearish Engulfing Pattern Hints At Pullback To 0.8600

Four Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

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