NZD/USD Retreats As Dojis Signal Hesitation From The Bulls
- NZD/USD Technical Strategy: Pending Short
- Dojis On The Daily Highlighted Hesitation
- Close Below 0.8400 To Open The 0.8260 Floor
NZD/USD has faced renewed selling pressure after a pair of Doji candlesticks on the daily suggested conviction was lacking amongst the bulls. This sets the pair up for a make-or-break moment as it descends on the 0.8400 floor. A push below the nearby barrier would set the scene for a descent towards the mid-February lows near 0.8260. Conversely a daily close above the pair’s recent highs at 0.8530 would be required to mark a small base.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a divergent picture to the daily. A Harami candlestick formation near the 0.8420 floor warns of a corrective bounce over the remainder of the session. However, the signal lacks confirmation from a successive up-period at this stage suggesting some doubt of a sustained advance is warranted.
NZD/USD: Harami Warns Of Intraday Bounce If Confirmed
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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