Talking Points
- NZD/USD Technical Strategy: Sidelines Preferred
- Dojisuggests hesitation by traders near key support
- Bullish pattern on four chart may see limited follow-through
A change in the tides may be on the cards for NZD/USD as a Doji on the daily chart reveals signs of hesitation amongst traders. However, with resistance looming overhead at the psychologically significant 0.8600 handle it may be too soon to suggest a bounce is on the cards.
NZD/USD: Doji Denotes Hesitation Amongst Traders
Daily Chart - Created Using FXCM Marketscope 2.0
A Bullish Engulfing pattern is on the radar for the Kiwi on the four hour chart. While the candlestick formation typically suggests a reversal, a recovery may prove limited given sellers are likely looking to cap gains for the currency at 0.8600.
NZD/USD: Bullish Pattern May Find Limited Follow-Through
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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