- 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
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
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.