NZD/USD Wild Swings Persist As Dark Cloud Cover Awaits Confirmation
- NZD/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover May Find Limited Follow-Through
- Bullish Engulfing Pattern Emerging On H4 Chart
NZD/USD continues to swing wildly within the 0.7730 to 0.8000 trading band with candlestick reversal signals failing to find much follow-through. This suggests the most recent Dark Cloud Cover formation should be treated with some caution. Confirmation from a successive down period may help pave the way for a return to the 2014 low. A break from the recent trading range would be preferred before adopting fresh positioning.
NZD/USD: Consolidation Continues Amid Choppy Trade
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bearish Engulfing formation on the four hour chart offered an advanced indication of a potential pullback during intraday trade. A Bullish Engulfing pattern now appears to be taking shape, which may herald a rebound over the session ahead. Sellers would likely look to return on a revisit of the recent highs near 0.7950.
NZD/USD: Bullish Engulfing Formation Taking Shape In Intraday Trade
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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