NZD/USD Edges Cautiously Higher With Hammer Formation In Its Wake
- NZD/USD Technical Strategy: Sidelines Preferred
- Hammer Confirmation Suggests Potential For Gains
- Recovery Likely To See Sellers Emerge At 0.8600
NZD/USD continues to edge higher after a Hammer formation offered an early indication of a potential recovery for the pair. However, several short body sessions suggests some hesitation from traders. This warrants some skepticism over the potential for a sustained push higher, and suggests recent price action may simply be a corrective bounce. Sellers may look to emerge at the next psychologically-significant level at 0.8600.
NZD/USD: Hammer Sees Kiwi Recover Ground
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart highlights a sustained struggle by the New Zealand Dollar to reclaim some of its lost ground. Several short sessions do little to inspire confidence in the idea of a sustained recovery for the Kiwi. A break above 0.8570 would open the 0.8600 handle, while a close under the 0.8515 mark would set the scene for a decline to 0.8480.
NZD/USD: Struggling To Reclaim Lost Ground
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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