- 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
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
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.