Talking Points
- NZD/USD Technical Strategy: Sidelines Preferred
- Gravestone Doji suggests hesitation from bears near key support
- 4 hour chart suggests bears may be looking to return
The Kiwi bears have taken a breather near the psychologically-significant 0.8600 handle, with a GravestoneDoji 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
A Morning Star formation near 0.8600 helped signal the bears were losing their grip on prices. However, they may be looking to stage a return as a Dark Cloud Cover pattern near 0.8700 forms. The close of the candle and confirmation from a successive down-period would be required before suggesting a correction back to 0.8600.
NZD/USD: Bears Lose Steam Near Key Support
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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