NZD/USD Piercing Line Indicates Potential For A Corrective Bounce
- NZD/USD Technical Strategy: Sidelines Preferred
- Piercing Line May Struggle To Find Follow-Through
- Close Below 0.8400 To Open The 0.8260 Floor
The New Zealand Dollar continues its cautious recovery with a Piercing Line formation in its wake.
While the bullish reversal signal suggests the potential for a corrective bounce, a sustained recovery may prove difficult with the short-term downtrend intact. A push below the nearby 0.8400 barrier would set the scene for a descent towards the mid-February lows near 0.8260.
NZD/USD: Piercing Line May Struggle To Find Follow-Through
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour timeframe reveals a similar narrative to the daily. The emergence of a Piercing Line pattern indicates the potential for an intraday recovery. Yet with a congestion zone looming overhead a sustained advance may prove difficult.
NZD/USD: Bullish Reversal Pattern Gives Hopes For Intraday 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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