NZD/USD Cracks Key Support As Bullish Reversal Patterns Left Lacking
- NZD/USD Technical Strategy: Shorts Preferred
- Daily Close Confirms Break Below Key Support
- H4 Signals Potential For An Intraday Recovery
NZD/USDhas cracked key support at the 84 US cent figure with key reversal signals lacking on the daily. This sets the scene for a run on the late February lows at 0.8260. A surge in volume also indicates the potential for further follow-through, as has been witnessed in previous cases.
NZD/USD: Daily Close Below 0.8400 Opens The Door On 0.8260
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour timeframe presents a divergent narrative to the daily. A Morning Star candlestick pattern is being etched out in intraday trade which may signal a turning point. Critically, the key reversal formation awaits the close of the current candle and a successive up-period to be confirmed. However, a recovery may prove limited given the backdrop painted by the daily.
NZD/USD: Morning Star Rising In Intraday Trade
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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.