NZD/USD Tests Range-Bottom As A Hammer Emerges In Intraday Trade
- Strategy: Flat
- Edging Towards Support Region, Yet A Sustained Decline Is Questionable
- Hammer Formation On The Four Hour Chart Awaiting Confirmation
NZD/USD is edging cautiously lower with an absence of bullish patterns on the daily leaving it potentially primed for a retest of 0.7700/30. Yet the prospect of a more sustained decline amid what has been essentially a sideways drift over recent weeks is questionable.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart has revealed several intraday range-trading opportunities over the course of the Kiwi’s consolidative period. A Hammer formation is thus quite noteworthy as a potential turning signal, particularly given its proximity to intraday support. Yet confirmation from an ensuing up session would be favored to raise the probability of a corrective bounce.
NZD/USD: Hammer Formation Awaits Confirmation Near Intraday Support
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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