Friday, July 11, 2014

NZD/USD Bulls Lose Steam As Doji Highlights Hesitation Near 2011 High




Talking Points



  • NZD/USD Technical Strategy: Pending Long


  • Doji highlights hesitation from traders near 2011 high


  • Absence of bearish patterns casts doubt on a correction


The New Zealand Dollar has stalled after hitting a fresh multi-year high in trading yesterday. The overhanging resistance level at 0.8840 likely prompted some hesitation by the bulls to push the currency higher. Further evidence of indecision is offered by a Doji candlestick on the daily. However, the formation is insufficient to suggest a significant correction at this point.



NZD/USD: Stalls Shy of 2011 High


NZD/USD Bulls Lose Steam As Doji Highlights Hesitation Near 2011 High


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



Similarly, the NZD/USD four hour chart demonstrated indecision from traders near the 0.8830/40 mark as denoted by a Doji Candlestick. With key reversal patterns for the pair lacking a directional bias for the session ahead is unclear.



NZD/USD: Awaiting Candlestick Signals In Intraday Trade


NZD/USD Bulls Lose Steam As Doji Highlights Hesitation Near 2011 High


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



By David de Ferranti, Currency Analyst, DailyFX



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NZD/USD Bulls Lose Steam As Doji Highlights Hesitation Near 2011 High

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