NZD/USD Edges Cautiously Higher With Hammer Formation In Its Wake

By DailyFx | August 05, 2014 AAA

DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred
  • Hammer Confirmation Suggests Potential For Gains
  • Recovery Likely To See Sellers Emerge At 0.8600

NZD/USD continues to edge higher after a Hammer formation offered an early indication of a potential recovery for the pair. However, several short body sessions suggests some hesitation from traders. This warrants some skepticism over the potential for a sustained push higher, and suggests recent price action may simply be a corrective bounce. Sellers may look to emerge at the next psychologically-significant level at 0.8600.

NZD/USD: Hammer Sees Kiwi Recover Ground

NZD/USD Edges Cautiously Higher With Hammer Formation In Its Wake

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

The four hour chart highlights a sustained struggle by the New Zealand Dollar to reclaim some of its lost ground. Several short sessions do little to inspire confidence in the idea of a sustained recovery for the Kiwi. A break above 0.8570 would open the 0.8600 handle, while a close under the 0.8515 mark would set the scene for a decline to 0.8480.

NZD/USD: Struggling To Reclaim Lost Ground

NZD/USD Edges Cautiously Higher With Hammer Formation In Its Wake

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.

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD upside remains corrective – Commerzbank
    Forex News

    GBP/USD upside remains corrective – Commerzbank

  2. USD/CHF shows recovery attempts, as it bottomed at 0.9340
    Forex News

    USD/CHF shows recovery attempts, as it bottomed at 0.9340

  3. SEB:  More EUR/USD buying seen above 1.2943 - eFXnews
    Forex News

    SEB: More EUR/USD buying seen above 1.2943 - eFXnews

  4. USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI
    Forex News

    USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI

  5. What’s the sentiment around the EUR/USD today? – Scotiabank and OCBC Bank
    Forex News

    What’s the sentiment around the EUR/USD today? – Scotiabank and OCBC Bank

Trading Center