NZD/USD Bearish Candlestick Pattern Opens 0.8500
- NZD/USD Technical Strategy: Shorts Preferred
- Shooting Star finds confirmation setting stage for declines
- Intraday recovery may be limited by nearby resistance
NZD/USD’s pullback from the critical 0.8740 mark has seen the emergence of a Shooting Star candlestick, which may be warning of a further correction for the pair. The daily close below the psychologically-significant 0.8700 handle helps to signal enough conviction amongst the bears to open 0.8500.
NZD/USD: Bearish Pattern Emerges Near 2014 High
Daily Chart - Created Using FXCM Marketscope 2.0
The four hour chart reveals some hesitation amongst traders, denoted by a Doji candlestick near 0.8645. However, the pattern may not enough to signal a recovery over the session ahead, particularly given selling pressure likely remains at the 0.8690/0.87000 mark.
NZD/USD: Recovery In Doubt Given Lack Of Reversal Signals
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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