- NZD/USD Technical Strategy: Sidelines Preferred
- Hammer Confirmation Suggests Potential For Gains
- Clear Break Above 0.8500 To Open Run On 0.8650
NZD/USD’s cautious recovery has continued in the wake of a Hammer formation on the daily. The bullish reversal pattern alongside the reclamation of the 0.8500 US cent handle suggests the potential for further gains. The next definitive level is some distance away (0.8650), however expect some sellers to emerge at psychologically-significant figures like 86 US cents. Some skepticism for a push higher may also be warranted given the short-term downtrend remains in force.
NZD/USD: Hammer Sees Kiwi Recover Ground
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart highlights a sustained struggle amongst traders between 0.8480 and 0.8515. Several short sessions do little to inspire confidence in the idea of a sustained recovery for the Kiwi. A break above 0.8515 over the session ahead would open the 0.8570 mark.
NZD/USD: Struggling To Reclaim Lost Ground
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.