Talking Points
- NZD/USD Technical Strategy: Sidelines Preferred
- Hanging Man hints at a reversal to support at 0.8700
- Four hour chart offers little indication of a bounce
NZD/USD is showing tentative signs of a reversal as the pair pushes below support at 0.8740 following a Hanging Man formation on the daily. The close of the current candle will help offer some confirmation of the signal which could herald a drop to the psychologically-significant 0.8700 handle.
NZD/USD: Hanging Man Hints At Retreat
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals the emergence of a narrow range between 0.8720 and 0.8790. Typically such thin corridors do not persist for extended periods. At this stage a bounce looks doubtful given the lackluster response to the Piercing Line pattern and absence of subsequent reversal signals.
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
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