NZD/USD Piercing Line Pattern Raises Hopes For A Recovery
- NZD/USD Technical Strategy: Sidelines Preferred
- Piercing Line Pattern Offers Hope To The Kiwi Bulls
- Awaiting Daily Close Above 0.8260 To Suggest A Base
NZD/USDhas demonstrated a promising response to a Piercing Line pattern. A successive up-day has helped confirm the bullish signal. Yet against the backdrop of a core downtrend on the daily, a complete shift in sentiment is likely to prove difficult. A climb above the 0.8260 hurdle would likely be required to mark a small base for the pair.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour timeframe paints a less encouraging picture than the daily and does little to inspire hope for the Kiwi bulls. Sellers appear intent on keeping the pair capped below the 0.8210 ceiling. Coupled with a Harami pattern there is the prospect of an intraday correction for the currency.
NZD/USD: Recovery Stalls At Intraday Resistance
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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