Talking Points
- NZD/USD Technical Strategy: Shorts Preferred
- Absence of Reversal Signals Suggests Recovery Unlikely
- Daily Close Below 0.8400 To Open The 0.8260 Floor
The New Zealand Dollar has finally cracked the 0.8460 barrier with a void of bullish reversal signals suggesting a recovery may be unlikely. A push past the nearby 0.8400 floor would set the scene for a descent towards the mid-February lows near 0.8260. However, subdued trading volume thus far to accompany the move warrants some skepticism and could be suggestive of a consolidation for the Kiwi.
NZD/USD: Awaiting Break Of 0.8400 With Reversal Signals Lacking
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a similar picture to the daily. An absence of bullish candlestick formations leaves little in the way to suggest a recovery over the session ahead.
NZD/USD: Intraday Recovery Questionable With Absence of Bullish Candlesticks
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.
