DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred
  • Shooting Star Candlestick Pattern Delivers Declines
  • Awaiting Clearance Of 0.8260 To Open 0.8060

NZD/USD is left at a critical juncture near the 0.8260 floor with a Shooting Star candlestick in its wake. A daily close under the critical floor would be required to open the next leg lower towards the pair’s 2014 lows near 0.8060. At this stage an absence of key reversal patterns casts doubt on the potential for a corrective bounce.

NZD/USD: Assault On 0.8400 Following Shooting Star Formation

NZD/USD Slides Towards Support Following Shooting Star Candlestick

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

An Evening Star pattern offered an early warning of a pullback in intraday trade for the Kiwi. The pair is now hinting at a bounce over the session ahead as a Bullish Engulfing pattern emerges near the session lows. If confirmed by a successive up period it could pave the way for a retest of former support-turned-resistance near 0.8343. Given the context afforded by the daily, selling into rallies is preferred.

NZD/USD: Eyes On H4 For Intraday Turning Point Signals

NZD/USD Slides Towards Support Following Shooting Star Candlestick

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.

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center