- NZD/USD Technical Strategy: Sidelines Preferred
- Hammer May Fail To Sustain Upside Momentum
- Selling Pressure Looms Overhead At 0.8530
NZD/USD’s prod back above the 0.8460 mark may fail to find follow-through with a Hammer formation lacking confirmation at this stage. A second successive up-day would help validate the reversal candlestick. However, the potential for a sustained recovery is questionable with significant selling pressure likely looming overhead at 0.8530.
NZD/USD: Hammer Candlestick Awaiting Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early indication of an intraday reversal given the Harami pattern near 0.8420. However, a Doji candlestick denotes hesitation from the Kiwi bulls to push the pair higher. This casts doubt over the potential for a recovery over the session ahead.
NZD/USD: Harami Offered Intraday Reversal Signal
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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