DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Pending Short
  • Piercing Line Pattern Awaiting Confirmation
  • Close Below 0.8400 To Open The 0.8260 Floor

NZD/USD’s recovery has yielded a Piercing Line candlestick pattern on the daily which awaits confirmation from a successive up day. While the bullish reversal signal suggests the potential for a corrective bounce, a sustained recovery may prove difficult with the short-term downtrend intact. A push below the nearby 0.8400 barrier would set the scene for a descent towards the mid-February lows near 0.8260.

NZD/USD: Piercing Line May Struggle To Find Follow-Through

NZD/USD Recovers Ground As Piercing Line Pattern Awaits Confirmation

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

The four hour timeframe reveals some hesitation from traders denoted by a Doji candlestick. The emergence of a bearish reversal signal near the 0.8480 ceiling would warn of a potential correction to intraday support at 0.8420.

NZD/USD: Doji Highlights Hesitation By The Bulls Near Intraday Resistance

NZD/USD Recovers Ground As Piercing Line Pattern Awaits Confirmation

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 Technical Analysis: Support Near 0.73 Holds Up

  2. Forex News

    NZD/USD Responds to .7275/95 Zone

  3. Forex News

    New Zealand Dollar Outlook Less Clear

  4. Forex News

    NZD/USD Technical Analysis: Probing Below 0.73 Figure

  5. Forex News

    NZD/USD Technical Analysis: 4-Month Support Pressured

Trading Center