DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred
  • Piercing Line May Once Again Struggle To Find Follow-Through
  • Morning Star On H4 Offered An Early Hint At A Recovery

NZD/USD is probing back above the critical 84 US cent barrier with a Piercing Line formation in its wake. Yet the key reversal pattern awaits confirmation from a successive up-day before being validated. Further, some skepticism over the potential for a more sustained recovery for the pair may be warranted given the last such formation saw a lackluster response.

NZD/USD: Recovery May Prove Limited With Downtrend Intact

USD/CAD Bearish Engulfing Pattern Warns Of A Correction

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

A textbook Morning Star formation on the four hour chart offered an advance indication of an intraday recovery for the Kiwi. However, the pair’s ascent has encountered some selling pressure at the 0.8420 barrier with a Shooting Star now forming. The close of the current candle and a successive down-period would be required to confirm the bearish signal and open the door to a retreat on 0.8343/5.

NZD/USD: Morning Star Rises In Intraday Trade

USD/CAD Bearish Engulfing Pattern Warns Of A Correction

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. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. 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​
  5. 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.
  6. 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.
  7. 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 ...
  8. Forex

    Top U.S Forex News Sites

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

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    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.
  10. 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.
COMPANIES IN THIS ARTICLE
Trading Center