NZD/USD May Extend Declines With Reversal Candlesticks Missing
- NZD/USD Technical Strategy: Pending Short
- Doji highlighted hesitation from traders near 2011 high
- Absence of bullish patterns casts doubt on potential recovery
The NZD/USD bears have come out of hibernation following a Doji formation near 0.8840 which signaled hesitation from traders to push the pair higher. With bullish reversal patterns lacking at this stage, a daily close below 0.8700 would set the stage for a push to 0.8500.
NZD/USD: Doji Highlighted Hesitation Near 2011 High
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Similarly a void of bullish signals on the four hour chart casts doubt over the potential for a recovery over the session ahead. Although the pair’s descent seems to have slowed near the psychologically-significant 0.8700 handle. This suggests new shorts may be best served on a pullback to former support-turned-resistance at 0.8720.
NZD/USD: Absence of Key Reversal Patterns Casts Doubt On A Recovery
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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