NZD/USD Bounce Sees Bullish Reversal Pattern Forming

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred
  • Harami pattern awaiting confirmation shy of key resistance
  • Bullish Engulfing pattern puts the 0.8700 handle in focus

The Kiwi look set to post a Harami formation as the currency’s sharp drop finds a soft landing around the 0.8670 mark. If confirmed by the close of the candle and a successive up-day the pattern could suggest a potential recovery for NZD/USD. However, this may prove difficult with the psychologically-significant 0.8700 handle looming overhead.

NZD/USD: Reversal Pattern Forming Shy of Resistance

NZD/USD Bounce Sees Bullish Reversal Pattern Forming

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

NZD/USD’s four hour chart reveals similar signs of a potential reversal for the pair. The Bullish Engulfing pattern near 0.8645 may yield a run on 0.8700. Yet with intraday support at 0.8645, current levels do not present a favorable risk-reward picture.

NZD/USD: Bullish Engulfing Pattern Hints At Intraday Recovery

NZD/USD Bounce Sees Bullish Reversal Pattern Forming

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.

You May Also Like

Related Forex Analysis
  1. Forex News

    Swiss Franc Sinks as SNB Surprises with Negative Interest Rates

  2. Forex News

    NZD/USD Technical Analysis: Support Below 0.77 in Focus

  3. Forex News

    NZD/USD Technical Analysis: Waiting for Trade Opportunity

  4. Forex News

    NZD/USD .7900 Looms Large

  5. Forex News

    NZD/USD Technical Analysis: Support Below 0.77 Targeted

Trading Center