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NZD/USD Bulls Lose Steam As A Key Reversal Pattern Emerges

DailyFX.com -

Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred

  • Recovery Stalls As A Bearish Pattern Emerges

  • Dojis Denote Indecision In Intraday Trade

NZD/USD’s recovery has stumbled as a Dark Cloud Cover candlestick formation warns the bulls have lost their grip on the pair. Amid recent choppy price action this may herald a consolidation for the Kiwi. Buying interest is likely to be renewed at the 2014 low near 0.7730.

NZD/USD: Recovery Falters As Bearish Pattern Emerges

NZD/USD Bulls Lose Steam As A Key Reversal Pattern Emerges
NZD/USD Bulls Lose Steam As A Key Reversal Pattern Emerges

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

A string of Dojis on the four hour chart indicates indecision from traders near 0.7850. Yet amid an absence of key reversal patterns a more constructive setup is desired to offer a clearer directional bias.

NZD/USD: Dojis Denote Indecision In Intraday Trade

NZD/USD Bulls Lose Steam As A Key Reversal Pattern Emerges
NZD/USD Bulls Lose Steam As A Key Reversal Pattern Emerges

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

By David de Ferranti, Currency Analyst, DailyFX

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