Talking Points
NZD/USD Technical Strategy: Sidelines Preferred
Morning Star formation leads recovery in prices
Break of resistance at 0.8600 opens further gains
The Kiwi has broken above critical resistance at 0.8600 in recent trading with the pair forming a Morning Star pattern. While admittedly a little lopsided, the bullish candlestick formation suggests an extended recovery for the pair. A push above nearby resistance at 0.8635 would open an advance on the 2014 highs near 0.8740.
NZD/USD: Recovery May Continue As Morning Star Forms
Daily Chart – Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; traders have looked past the Hanging Mancandlestick pattern following a bounce off support at 0.8550. With a reversal signal lacking in intraday trade, the pair may be set to extend its recovery to 0.8645.
NZD/USD: Bounces Off Support At 0.8550
Four Hour Chart – Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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NZD/USD Bounce May Continue Post Morning Star Formation
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