NZD/USD Dramatic Turn Leaves Bullish Pattern In Its Dust
- NZD/USD Technical Strategy: Sidelines Preferred
- Bullish Engulfing Formation Emerges After Rebound
- Dragonfly Doji Suggests Indecision In Intraday Trade
NZD/USD’s impressive about-face has produced a Bullish Engulfing formation on the daily. Critically, the key reversal pattern awaits confirmation from an ensuing up-day to raise the probability of a more sustained advance. A close above the psychologically-significant 0.8000 handle would open the prospect of a run on the 0.8060 ceiling.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Dragonfly Doji near 0.8000 signals reluctance from the bulls to lead the Kiwi higher in intraday trade. Yet an absence of classic reversal patterns leaves the prospect of a pronounced pullback over the session ahead as questionable. An intraday retreat is likely to find buying interest renewed at the 0.7950 floor.
NZD/USD: Dragonfly Doji Denotes Indecision Near 0.8000 Barrier
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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