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Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred
  • Harami pattern near 0.8700 finds little follow-through
  • Intraday dip may be limited by nearby support

The Kiwi is once again teasing at a break of its 2014 high near 0.8745 after a Harami pattern on the daily failed to find much follow-through. With a bearish reversal signal absent on the daily, a correction may be precluded at this stage. Buyers will likely look to keep the pair supported at the psychologically-significant 0.8700 handle.

NZD/USD: Harami Finds Little Follow-Through

NZD/USD Teases At Upside Break With Bearish Candlesticks Absent

Daily Chart - Created Using FXCM Marketscope 2.0

The four hour chart suggests the potential for an intraday dip in the session ahead, signaled by the Harami candlestick formation. However, the extent of a correction may be limited given support at 0.8670/0.8700 rests nearby.

NZD/USD: Intraday Dip May Be Limited By Nearby Support

NZD/USD Teases At Upside Break With Bearish Candlesticks Absent

Four Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Currency Analyst, DailyFX

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