NZD/USD Shooting Star Emerges Near Key 0.8700 Handle
- NZD/USD Technical Strategy: Longs Preferred
- Daily close above 0.8500 handle suggests further gains
- Shooting Star pattern warns of a correction in the session ahead
As noted in recent candlesticks reports, the Kiwi was primed for further gains following a daily close above the 0.8500 handle. While there may be an absence of bearish candlestick patterns on the daily, some signs of potential weakness are evident in intraday trade (see four hour chart).
Daily Chart - Created Using FXCM Marketscope 2.0
The four hour chart reveals the presence of a Shooting Star formation which is warning of a potential correction. The 0.8700 handle poses a threat to a recovery, given sellers are likely sitting at the psychologically-significant level.
NZD/USD: Shooting Star Warns of A Pullback Near Key Level
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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