Talking Points
NZD/USD Technical Strategy: Sidelines Preferred
Bearish engulfing pattern on the daily negated
Uptrend remains intact cautioning against shorts
As noted in yesterday’s candlesticks report, the Doji on the daily suggested the bears had gone into hiding and a run on the 0.8635 mark was possible. The Kiwi’s gains may be set to continue with the currency now pushing on its 2013 highs and a bearish reversal signal lacking on both the daily and weekly timeframes.
NZD/USD: Doji Near 0.8500 Highlighted Potential For Bounce
Daily Chart – Created Using FXCM Marketscope 2.0
As per the four hour chart below the presence of a Piercing Line pattern near noteworthy support at 0.8510 prompted a bounce for the NZD/USD. With traders pushing prices towards the 0.8640 mark during the Asian session, an upside breakout may open an advance on 0.8830 (see weekly).
NZD/USD: Bounces Post Piercing Line Pattern
Four Hour Chart – Created Using FXCM Marketscope 2.0
The Gravestone Doji on the weekly has failed to receive confirmation from a successive down period. With prices in a continued uptrend a break above 0.8665 would favor longs with a target near resistance at 0.8830.
NZD/USD: Traders Look Past Gravestone Doji
Weekly Chart – Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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Forex Strategy: NZD/USD May Extend Gains Beyond 2013 High
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