NZD/USD Bulls Retreat As A Doji Signals Reluctance Near 0.7800
- NZD/USD Technical Strategy: Sidelines Preferred
- Piercing Line Pattern Left Lacking Confirmation
- Breach of 0.7730 Needed Open ’12 Low Near 0.7450
NZD/USD has been left with a Doji in its shadow which indicates indecision from traders near the 0.7800 handle. The candlestick formation symbolizes an underwhelming response to a Piercing Line pattern, which leaves the pair lacking bullish cues. This keeps the immediate risk lower with a daily close below the nearby 0.7730 barrier required to open the 2012 low near 0.7450.
NZD/USD: Piercing Line Fails To Find Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A congestion zone appears to have formed between 0.7740 and 0.7907 in intraday trade. A medley of short body candles and Doji formations suggests upside momentum may have stalled. However, with key reversal candlesticks lacking a correction is questionable.
NZD/USD: Dojis Highlight Hesitation Within “Congestion Zone”
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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