- NZD/USD Technical Strategy: Sidelines Preferred
- Hammer Candlestick Pattern Offers Bullish Reversal Signal
- Climb Over 0.8400 Needed To Suggest A Sustained Recovery
The Kiwi has managed to extend its recent gains after a Hammer candlestick signaled the return of the bulls. Yet within the context of a pronounced downtrend a close above the 0.8400 hurdle would be required to signal the potential for a more sustained recovery for the pair.
NZD/USD: Hammer Offered Sign of Hope To The Bulls
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
As noted in yesterday’s report a Morning Star formation on the four hour chart offered an early indication of a potential recovery for the Kiwi. An absence of key reversal patterns casts some doubt on an intraday correction for the pair. Yet, at the same time sellers sitting at the 0.8400 handle may keep the currency capped.
NZD/USD: Morning Star Signaled Rise Of The Bulls
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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