NZD/USD Absence Of Bearish Patterns Suggests Fresh Highs Ahead
- NZD/USD Technical Strategy: Longs Preferred
- Breakout opens further gains in absence of bearish patterns
- Close above 0.8780 paves the way for an advance on 0.8840
The Kiwi bulls have managed to regain control of prices after earlier signs of hesitation from a Doji formation on the daily. Following a marginal close above former-resistance-turned support at 0.8780 the pair may be primed for a push to its 2011 high at 0.8840. Support for additional gains also stems from an absence of major reversal patterns.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart for the Kiwi similarly shows few signs of a correction over the session ahead. A retest of the initial breakout point Doji formation helps to signal further gains for the New Zealand Dollar.
NZD/USD: Clear of Bearish Reversal Patterns
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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