NZD/USD Sets Sights Higher With Reversal Candlesticks Missing
- NZD/USD Technical Strategy: Longs Preferred
- Daily close above psychological level suggests further gains
- Bearish candlesticks remain absent on daily and four hour chart
As noted in yesterday’s candlesticks report, the Kiwi was primed for further gains following a daily close above the psychologically significant 0.8500 handle. With the absence of bearish reversal candlestick patterns remaining, the pair may be set for further gains. Sellers may look to emerge at the 2014 high near 0.8745.
Daily Chart - Created Using FXCM Marketscope 2.0
While a Shooting Star pattern has emerged on the four hour chart, it would need to see validation from a successive down-period to offer confirmation that a correction could occur.
NZD/USD: Shooting Star Lacking Confirmation Near Resistance
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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