NZDUSD Rebound Leaves A Bullish Formation Awaiting Validation
- NZD/USD Technical Strategy: Flat
- Key Reversal Pattern Awaiting Confirmation
- H4 Chart Offered An Early Rebound Hint
NZD/USD has poked its head back above the 0.7700/30 threshold with a Bullish Engulfing formation in its path. The key reversal pattern requires validation from a successive up-day to open the prospect of a further advance. Yet with a short-term downtrend in force, this may prove challenging.
NZD/USD: Bullish Engulfing Pattern Emerges On Bounce Back
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bullish Engulfing formation on the four hour chart offered an early hint at a reversal in intraday trade. Bearish signals remain lacking suggesting the potential for a push higher, which may encounter selling interest at the 0.7830 ceiling.
NZD/USD: Bullish Engulfing Pattern Offered An Early Hint At A Reversal
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.