NZD/USD Drops To Key Support Following Reversal Formation
- 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. The pullback has been met by some buying support at the psychologically-significant 0.8600 handle. However, we’re yet to see a bullish signal suggest a bounce at this stage.
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 0.8600 with a Long-Legged Doji having formed, 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, Currency Analyst, DailyFX
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