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NZD/USD Eyes 0.7700 With A Bearish Engulfing Formation In Tow

NZD/USD Eyes 0.7700 With A Bearish Engulfing Formation In Tow

David de Ferranti, Currency Analyst

Talking Points

  • 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

NZD/USD Eyes 0.7700 With A Bearish Engulfing Formation In Tow

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

NZD/USD Eyes 0.7700 With A Bearish Engulfing Formation In Tow

Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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