NZD/USD Descent Stalls As A Doji Denotes Hesitation By The Bears
- NZD/USD Technical Strategy: Sidelines Preferred
- Traders Left In Suspense As A Doji Emerges
- Awaiting Clearance Of 0.8260 To Open 0.8060
NZD/USD remains at crossroads as the emergence of a Doji suggests the bears are losing steam. A daily close under the 0.8260 floor would be required to open the next leg lower towards the pair’s 2014 lows near 0.8060. At this stage an absence of key reversal patterns casts doubt on the potential for a corrective bounce.
NZD/USD: Downside Momentum Fades As Doji Emerges
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bullish Engulfing formation on the four hour chart failed to find confirmation from a successive up-period. A procession of several short candles do little to inspire confidence in the potential for a sustained recovery for the pair. Given the context afforded by the daily, selling into rallies is preferred.
NZD/USD: Bullish Pattern Fails To Find Follow-Through
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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