NZD/USD Absence Of Bearish Patterns Suggests Fresh Highs Ahead

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Longs Preferred
  • Breakout opens further gains in absence of bearish patterns
  • Close above 0.8780 paves the way for an advance on 0.8840

The Kiwi bulls have managed to regain control of prices after earlier signs of hesitation from a Doji formation on the daily. Following a marginal close above former-resistance-turned support at 0.8780 the pair may be primed for a push to its 2011 high at 0.8840. Support for additional gains also stems from an absence of major reversal patterns.

NZD/USD: Breakout Paves Way For Further Gains

NZD/USD Absence Of Bearish Patterns Suggests Fresh Highs Ahead

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour chart for the Kiwi similarly shows few signs of a correction over the session ahead. A retest of the initial breakout point Doji formation helps to signal further gains for the New Zealand Dollar.

NZD/USD: Clear of Bearish Reversal Patterns

NZD/USD Absence Of Bearish Patterns Suggests Fresh Highs Ahead

Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @Davidde

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.

Related Forex Analysis
  1. Investing

    NZD/USD Forecast: December 2014

  2. Forex News

    NZD/USD Bullish Engulfing Pattern Awaiting Confirmation

  3. Forex News

    Euro Vulnerable as German CPI, Draghi Commentary Looms Ahead

  4. Forex News

    Euro Heading Into Turbulent Fundamental Seas

  5. Forex News

    NZD/USD Technical Analysis: Kiwi Rebound Hinted Ahead

Trading Center