DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred
  • Harami pattern near 0.8700 suggests the potential for a pullback
  • Dark Cloud Cover signals potential dip in the session ahead

The Kiwi’s recent run has stalled at the 0.8700 handle with a slight pullback offering the formation of a Harami pattern. The signal awaits confirmation from a second down-day which would suggest a correction back to the psychologically-significant 0.8600 level.

NZD/USD: Harami Pattern Awaits Confirmation Near Resistance

NZD/USD Retreat To Continue Following Bearish Candlestick Signals

Daily Chart - Created Using FXCM Marketscope 2.0

Similarly, the four hour chart warns of a continued retreat for the New Zealand Dollar, based on the presence of a Dark Cloud Cover pattern. While the next definitive support rests at 0.8570, some interim buying support may emerge at the psychologically-significant 0.8600 handle.

NZD/USD: Retreat May Continue As Dark Cloud Cover Warns of Declines

NZD/USD Retreat To Continue Following Bearish Candlestick Signals

Four Hour Chart - Created Using FXCM Marketscope 2.0

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: Treading Water Near 0.73

  2. Forex News

    NZD/USD Technical Analysis: Support Near 0.73 Holds Up

  3. Forex News

    NZD/USD Responds to .7275/95 Zone

  4. Forex News

    New Zealand Dollar Outlook Less Clear

  5. Forex News

    NZD/USD Technical Analysis: Probing Below 0.73 Figure

Trading Center