NZD/USD Recovery Hopes Fade As Traders Look Past Bullish Pattern
- NZD/USD Technical Strategy: Sidelines Preferred
- Piercing Line Fails To Find Follow-Through
- Lack of Bullish Signals Casts Doubt On A Bounce
NZD/USD’s recovery proved short-lived as traders have looked past a Piercing Line formation on the daily. With confirmation of the bullish reversal signal lacking the pair may be exposed to further weakness. Clearance of the 0.8350 floor could pave the way for a descent on the late February lows near 0.8260.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A similar narrative to the daily is present in intraday trade on the four hour chart. Buying interest at 0.8343 has halted the pair’s descent for now. However, an absence of key reversal candlestick formations casts doubt on the potential for a recovery over the remainder of the session.
NZD/USD: Recovery Questionable In Absence Of Key Reversal Patterns
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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