NZD/USD Fails To Breach 0.8400 Barrier As Recovery Falters
- NZD/USD Technical Strategy: Sidelines Preferred
- Hammer Fails To Find Follow-Through On Test of 0.8400
- Climb Over 0.8400 Needed To Suggest A Sustained Recovery
The Kiwi’s assault on the 0.8400 barrier has proven unsuccessful as a Shooting Star pattern warns of a further pullback. A daily close over the critical hurdle would be required to suggest the potential for a more sustained recovery for NZD/USD. However, while sub 0.8400 the recent lows near 0.8300 may be achievable.
NZD/USD: Assault On 0.8400 Fails
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An Evening Star pattern offered an early warning for a pullback in intraday trade. The pair appears to have found some buying interest at the 0.8343 mark. However, a void of key reversal candlesticks makes a recovery look questionable. Nonetheless traders should keep an eye on the four hour chart to indicate potential turns within what looks like a fairly narrow trading band.
NZD/USD: Evening Star Offered Intraday Turning Point Signal
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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