NZD/USD Rebounds After Piercing Line Pattern Offered Bullish Signal
- NZD/USD Technical Strategy: Sidelines Preferred
- Bullish Candlestick Pattern Generates Strong Rebound
- Breach of 0.7730 Needed Open ’12 Low Near 0.7450
NZD/USD has been propelled higher after a Piercing Line pattern suggested the bulls were looking to return. 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.
NZD/USD: Piercing Line Pattern Prompts Return Of The Bulls
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The sharp ascent for the Kiwi in intraday trade was preceded by a pair of Dojis that denoted hesitation by the bears. Despite some selling pressure appearing at 0.7900 there remains an absence of bearish candlesticks. This in turns casts some doubt over the potential for a correction over the session ahead.
NZD/USD: Dojis Highlighted Hesitation Near 2014 Low
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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