NZD/USD Recovery Falters As Hanging Man Forms

Talking Points

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  NZD/USD Technical Strategy: Shorts Preferred
  


• 
  Dark Cloud Cover dominates price action
  


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  Dojis suggest some hesitation by traders near 0.8600
  

While the Kiwi has staged a small recovery in recent trade, the pair continues to struggle below critical resistance at 0.8600. Given the Dark Cloud Cover pattern on the daily, until a bullish reversal signal emerges the downside is preferred.

NZD/USD: Sub 0.8600 Suggests Bearish Bias

Daily Chart – Created Using FXCM Marketscope 2.0

Drilling down to the four hour chart; a Hanging Man candlestick has received confirmation suggesting the potential for continued declines on a break below nearby support at 0.8550.

NZD/USD: Recovery Falters As Hanging Man Forms

Four Hour Chart – Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

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NZD/USD Recovery Falters As Hanging Man Forms