NZD/USD Push Above 0.8700 Negates Bearish Signals
- NZD/USD Technical Strategy: Pending Long
- Recovery negates bearish patterns
- Bullish Engulfing formation opens further gains
NZD/USD has staged a sharp upside reversal which has yielded a Bullish Engulfing pattern on the daily. This acts to nullify several bearish candlestick formations including the Harami near 0.8740. A daily close above 0.8740 would signal enough conviction amongst traders to open the 2011 high at 0.8840.
NZD/USD: Reversal Prompts Bullish Pattern To Emerge
Daily Chart - Created Using FXCM Marketscope 2.0
The four hour chart reveals some hesitation amongst traders, denoted by a Doji candlestick near the May High at 0.8745. However, the pattern may not enough to signal a correction over the session ahead, particularly given support likely remains at the 0.8690/0.87000 mark.
NZD/USD: Doji Highlights Indecision Near May High
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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