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NZD/USD Recovery Questionable As Piercing Line Awaits Confirmation

NZD/USD Recovery Questionable As Piercing Line Awaits Confirmation

David de Ferranti, Currency Analyst

Talking Points

  • NZD/USD Technical Strategy: Shorts Preferred
  • Piercing Line Candlestick Pattern Awaiting Validation
  • Daily Close Below 0.8260 Opened Descent Towards 0.8060

NZD/USD’sslight rebound has left a Piercing Line candlestick pattern in its wake. Yet the bullish reversal formation awaits confirmation from a successive up-day. Against the backdrop of a core downtrend on the daily, a complete shift in sentiment is likely to prove difficult.

NZD/USD: Piercing Line Pattern May Struggle To Find Follow-Through

NZD/USD Recovery Questionable As Piercing Line Awaits Confirmation

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

The four hour timeframe does little to inspire hope for the Kiwi bulls. The bounce from 0.8120 has failed to yield key reversal candlesticks, which casts some doubt on the potential for a recovery.

NZD/USD: Absence of Key Reversal Patterns Casts Doubt On A Recovery

NZD/USD Recovery Questionable As Piercing Line Awaits Confirmation

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

By David de Ferranti, Currency Analyst, DailyFX

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