NZD/USD Consolidation Continues As Doji Highlights Hesitation
- NZD/USD Technical Strategy: Sidelines Preferred
- Dojicandlesticks highlight hesitation from traders
- Absence of bearish patterns casts doubt on pullback
NZD/USD’s consolidation continues as several Doji candlesticks above 0.8740 suggest hesitation from traders to lead a breakout for the pair. An absence of outright reversal patterns and lack of a spike in retail trading volume casts doubt on the potential for a correction.
Traders should note the upcoming US NFPs report hold the potential to spark significant volatility for NZD/USD, which could act to negate technical signals offered.
NZD/USD: Ascent Stalls Near Recent Highs
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
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, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.