NZD/USD Stalls At 0.8000 Barrier As A Doji Arises & Volume Fades
- NZD/USD Technical Strategy: Sidelines Preferred
- Doji Indicates Indecision At Nearby Ceiling
- Bearish PatternOn H4 Warns Of Intraday Weakness
The Kiwi bulls have seemingly lost steam as indicated by a Doji candlestick and fading volume for the currency. Yet as noted in recent reports some skepticism over a corrective move lower may be warranted given recent ‘messy’ price action. At the same time scope for an advance appears to be limited by sellers sitting at the 0.8000 handle. This in turn suggests a consolidation may be the more likely path for NZD/USD.
NZD/USD: Doji Suggests Hesitation Near 0.8000 Barrier
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bearish Engulfing pattern on the four hour chart signals a potential intraday shift in sentiment near 0.8000. However, choppy price action over the past several sessions suggests limited potential scope for downside follow-through. Buying interest is likely to be renewed at the 0.7895 floor.
NZD/USD: Bearish Engulfing Pattern May See Limited Follow-Through
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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