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 bears have taken a breather near the psychologically-significant 0.8600 handle, with a Doji formation suggesting signs of hesitation from traders to push the currency lower. However, it may be too soon to call for a bounce, given a bullish signal remains lacking on both the daily and four hour charts.
NZD/USD: Finds Support At 0.8600
Daily Chart - Created Using FXCM Marketscope 2.0
Similarly in intraday trade a bullish reversal signal is seemingly absent, which casts doubt on a potential recovery in the session ahead.
NZD/USD: Lacking Bullish Signal In Intraday Trade
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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