Talking Points
- NZD/USD Technical Strategy: Longs Preferred
- Bullish Engulfing pattern put 0.8780 in sight
- Absence of bearish patterns casts doubt on pullback
NZD/USD’s recent bull-run has stalled near the May high at 0.8780 with signs of hesitation from traders denoted by a Doji candlestick forming on the daily. However an absence of outright reversal patterns casts doubt on the potential for a pullback. Buyers remain prepared to support the pair at the 0.8740 mark.
NZD/USD: Ascent Stalls Near Recent Highs
Daily Chart - Created Using FXCM Marketscope 2.0
The four hour chart reveals the emergence of a narrow range between 0.8730 and 0.8790. Typically such thin corridors do not persist for extended periods. However, with candlestick signals somewhat lacking, the possible direction of an eventual break is clouded.
NZD/USD: Narrow Range Forms As Traders Await Guidance
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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