NZD/USD Awaiting Break Below 0.7730 With Bullish Signals Missing
- NZD/USD Technical Strategy: Pending Short
- Awaiting Downside Break Amid Void Of Bullish Signals
- H4 Chart To Be Monitored For Early Hints At A Bounce
NZD/USD is at a crossroads near the 0.7730 floor with a void of bullish reversal formations suggesting a recovery may prove challenging. This leaves a downside break preferred for fresh short positioning with a target offered by the 2012 low near 0.7450.
NZD/USD: Awaiting Breakout Below Critical Barrier With Bullish Signals Missing
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart should be closely monitored for early signs of a corrective bounce. Already a Bullish Engulfing formation appears to be emerging. Yet a close of the second candle and successive up-period would be required to offer a more definitive signal. This may prove challenging with sellers likely sitting nearby at the 0.7790 ceiling.
NZD/USD: Bullish Engulfing Pattern Emerging In Intraday Trade
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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