NZD/USD Retreat Sees Bullish Pattern Fall Flat
- Strategy: Flat, Pending Short On Close Below 0.7700
- Pullback Sees Bullish Engulfing Pattern Fall Flat
- H4 Chart Offered An Early Correction Hint
NZD/USD’s latest pullback has denied a Bullish Engulfing pattern confirmation, which may leave the pair set to continue on its downward trajectory. A push back below the 0.7700/30 threshold could pave the way for a descent on 0.7650 ahead of the 2012 low at 0.7450.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Dark Cloud Cover pattern on the four hour chart offered an early warning signal of an intraday correction for the Kiwi. With bullish reversal patterns lacking in intraday trade, a corrective bounce is questionable. Buyers may look to step in to support the currency at the 0.7660 floor.
NZD/USD: Bullish Reversal Signals Lacking 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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