- 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
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
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.