- 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
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
Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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