NZD/USD Facing Make-Or-Break Moment Near 0.8400

By DailyFx | August 13, 2014 AAA

DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Shorts Preferred
  • Absence of Reversal Signals Suggests Recovery Unlikely
  • Daily Close Below 0.8400 To Open The 0.8260 Floor

The New Zealand Dollar’s descent has encountered some buying support near the critical 0.8400/20 floor. However, a void of bullish reversal signals suggests a recovery may be unlikely. A push past the nearby 0.8400 barrier would set the scene for a descent towards the mid-February lows near 0.8260.

NZD/USD: Awaiting Break Of 0.8400 With Reversal Signals Lacking

NZD/USD Facing Make-Or-Break Moment Near 0.8400

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

Several short body periods on the four hour chart suggests indecision from traders near the 0.8400/20 support zone. However, at this stage candlestick reversal signals remain lacking which casts doubt over the potential for a corrective bounce.

NZD/USD: Intraday Recovery Questionable With Absence of Bullish Candlesticks

NZD/USD Facing Make-Or-Break Moment Near 0.8400

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. USD/JPY desperate to move away from 107.00
    Forex News

    USD/JPY desperate to move away from 107.00

  2. US Dollar Technical Analysis: Readying to Resume Uptrend?
    Forex News

    US Dollar Technical Analysis: Readying to Resume Uptrend?

  3. GBP/USD goes nowhere ahead of retail sales report
    Forex News

    GBP/USD goes nowhere ahead of retail sales report

  4. EUR/JPY Technical Analysis: Former Resistance Now Support
    Forex News

    EUR/JPY Technical Analysis: Former Resistance Now Support

  5. GBP/JPY Technical Analysis: Pound Sold vs. Japanese Yen
    Forex News

    GBP/JPY Technical Analysis: Pound Sold vs. Japanese Yen

Trading Center