NZD/USD Struggling Sub 0.8700 Following Harami Pattern
- NZD/USD Technical Strategy: Sidelines Preferred
- Harami pattern near 0.8700 sees lackluster response
- Dark Cloud Cover delivered intraday dip
The Kiwi’s recent run has stalled at the 0.8700 handle with a slight pullback offering the formation of a Harami pattern. With the reversal signal finding little follow-through at this stage, the extent of a correction may be limited. Buyers will likely look to emerge at the psychologically-significant 0.8600 handle.
Daily Chart - Created Using FXCM Marketscope 2.0
The Dark Cloud Cover pattern noted in yesterday’s candlesticks report delivered an intraday dip for the Kiwi. However, with buyers stepping in at the 0.8645 mark there is doubt on the potential for an extended decline.
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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