NZD/USD Near Key Support With Hanging Man Offering Bearish Signal

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred
  • Hanging Man hints at a reversal to support at 0.8700
  • Awaiting close of candle on four hour chart to offer signal

NZD/USD could be primed for a further pullback following the emergence of a Hanging Man pattern on the daily. A push below support at 0.8700 would be seen as a bearish signal and pave the way for a retreat to 0.8500.

NZD/USD: Hanging Man Offers Bearish Signal Near Key Resistance

NZD/USD Near Key Support With Hanging Man Offering Bearish Signal

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

The four hour chart reveals the emergence of a narrow range between 0.8720 and 0.8790. Typically such thin corridors do not persist for extended periods. While a Morning Star formation appears to be forming, the third candle needs to close before offering a bullish reversal signal.

NZD/USD: Narrow Range Forms As Traders Await Guidance

NZD/USD Near Key Support With Hanging Man Offering Bearish Signal

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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    NZD/USD Candlestick Analysis: Waiting for Short Trade Setup

  2. Forex News

    NZD/USD Technical Analysis: Rally Capped at 3-Month High

  3. Forex News

    Commodity Dollars Soar After China Cuts Reserve Requirement Ratio

  4. Forex News

    NZD/USD Technical Analysis: Trying to Overcome 0.77 Mark

  5. Forex News

    NZD/USD Retail Crowd Remains Net-Short Ahead of New Zealand 1Q CPI

Trading Center