News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
NZD/USD Hammer Candlestick Offers Hopes For A Corrective Bounce

NZD/USD Hammer Candlestick Offers Hopes For A Corrective Bounce

David de Ferranti, Currency Analyst

Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred
  • Hammer Candlestick Pattern Offers Bullish Reversal Signal
  • Climb Over 0.8400 Needed To Suggest A Sustained Recovery

NZD/USD may have reached a turning point with a Hammer formation offering a sign of hope for the bulls. An ensuing up-day and close above the 0.8400 hurdle would be required to signal the potential for a more sustained recovery for the pair. Yet skepticism over a bounce may be warranted given the backdrop of a pronounced downtrend on the daily.

NZD/USD: Hammer Offers Sign of Hope To The Bulls

NZD/USD Hammer Candlestick Offers Hopes For A Corrective Bounce

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

A similar narrative to the daily is evident in intraday trade on the four hour chart. A bounce off the 0.8312 floor has yielded a a Morning Star pattern which signals a shift in sentiment for the pair. The leap over the 0.8343 hurdle opens the potential for a run on the psychologically-significant 0.8400 handle.

NZD/USD: Bullish Pattern Emerges In Intraday Trade

NZD/USD Hammer Candlestick Offers Hopes For A Corrective Bounce

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.

DISCLOSURES