NZD/USD At A Critical Juncture As Bullish Pattern Awaits Confirmation
- NZD/USD Technical Strategy: Shorts Preferred
- Piercing Line Pattern Awaits Confirmation
- Breach of 0.7730 Needed Open ’12 Low Near 0.7450
NZD/USD’s production of a Piercing Line pattern has seen a lackluster response from traders – casting doubt on a reversal for the pair. The candlestick formation still requires confirmation from an ensuing up-day to indicate that a base may have formed. Yet, within the context of a broader downtrend on the daily a sustained advance may prove difficult. A close below the pair’s recent lows would set the scene for a descent on the 2012 low near 0.7450.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour timeframe reveals an intraday drift for the Kiwi near the 0.7740 barrier. However, with a void of key reversal formations the pair is left lacking bullish cues from candlesticks analysis.
NZD/USD: Intraday Consolidation Leaves Bullish Candlesticks Lacking
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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