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.
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
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