NZD/USD Downside Risks Remain With Reversal Candlesticks Lacking
- NZD/USD Technical Strategy: Shorts Preferred
- Recovery Questionable With Reversal Patterns Lacking
- Daily Close Below 0.8260 Opens Grind Towards 0.8060
NZD/USD has extended its recent declines with a lack of bullish candles warning of further weakness ahead. Against the backdrop of a core downtrend on the daily this opens the prospect of a grind towards the February lows near 0.8060.
NZD/USD: Left Lacking Bullish Signals On Slide Below Support
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart tells a similar narrative to the daily with a void of key reversal patterns suggesting the risks remain skewed to the downside. Given the context afforded by longer timeframes, this leaves shorts preferred.
NZD/USD: Absence of Key Reversal Patterns Casts Doubt On A Recovery
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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