NZD/USD Bearish Pattern Falls Flat As Consolidation Endures
- NZD/USD Technical Strategy: Flat
- Bearish Formation Finds Little Follow-Through
- Doji On H4Suggests Indecision In Intraday Trade
NZD/USD has seen disappointing follow-through to a bearish candlestick formation. The Bearish Engulfing pattern has failed to receive confirmation from a successive-down day. This may suggest the Kiwis’ directionless sideways drift may continue. A break of the nearby 0.7730 floor would be required to offer a bearish bias and open the next leg lower for the currency.
NZD/USD: Bearish Pattern Sees Lackluster Response
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart is showing signs of indecision from traders in the form of a Doji formation. Yet an absence of more definitive reversal signals leaves a clear directional bias lacking.
NZD/USD: Doji Suggests Indecision In Intraday Trade
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.