DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Pending Short
  • Doji highlighted hesitation from traders near 2011 high
  • Absence of bullish patterns casts doubt on potential recovery

The NZD/USD bears have come out of hibernation following a Doji formation near 0.8840 which signaled hesitation from traders to push the pair higher. With bullish reversal patterns lacking at this stage, a daily close below 0.8700 would set the stage for a push to 0.8500.

NZD/USD: Doji Highlighted Hesitation Near 2011 High

NZD/USD May Extend Declines With Reversal Candlesticks Missing

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

Similarly a void of bullish signals on the four hour chart casts doubt over the potential for a recovery over the session ahead. Although the pair’s descent seems to have slowed near the psychologically-significant 0.8700 handle. This suggests new shorts may be best served on a pullback to former support-turned-resistance at 0.8720.

NZD/USD: Absence of Key Reversal Patterns Casts Doubt On A Recovery

NZD/USD May Extend Declines With Reversal Candlesticks Missing

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.

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center