NZD/USD Eyes 0.7700 With A Bearish Engulfing Formation In Tow
- NZD/USD Technical Strategy: Pending Short
- Bearish Engulfing Formation Casts Risks Lower
- Awaiting Break Below Range-Bottom For New Shorts
NZD/USD may be exposed to further weakness in the wake of a Bearish Engulfing pattern on the daily. The key reversal signal suggests a possible push towards the recent lows near 0.7730. Yet given the proximity of currency prices to the barrier, fresh shorts would be preferred on a downside break.
NZD/USD: Bearish Pattern Casts Risks Lower
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart flashed an early warning signal near 0.7960 in the form of a Shooting Star pattern. A lack of bullish reversal signals suggests the pair may endure further declines. Buying interest may be renewed near intraday support at 0.7740.
NZD/USD: Shooting Star Offered Early Warning
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @DaviddeFe
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.