NZD/USD At A Critical Juncture As Bullish Pattern Awaits Confirmation

Talking Points

• 
  NZD/USD Technical Strategy: Shorts Preferred
  


• 
  Piercing Line Pattern Awaits Confirmation
  


• 
  Breach of 0.7730 Needed Open ’12 Low Near 0.7450
  

NZD/USD’s production of a Piercing Line pattern has seen a lackluster response from traders – casting doubt on a reversal for the pair. The candlestick formation still requires confirmation from an ensuing up-day to indicate that a base may have formed. Yet, within the context of a broader downtrend on the daily a sustained advance may prove difficult. A close below the pair’s recent lows would set the scene for a descent on the 2012 low near 0.7450.

NZD/USD: Piercing Line Pattern Awaiting Confirmation Near Recent Lows

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

The four hour timeframe reveals an intraday drift for the Kiwi near the 0.7740 barrier. However, with a void of key reversal formations the pair is left lacking bullish cues from candlesticks analysis.

NZD/USD: Intraday Consolidation Leaves Bullish Candlesticks Lacking

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

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

NZD/USD At A Critical Juncture As Bullish Pattern Awaits Confirmation