Friday, October 31, 2014

NZD/USD Bearish Pattern Falls Flat As Consolidation Endures




Talking Points



  • NZD/USD Technical Strategy: Flat


  • Bearish Formation Finds Little Follow-Through


  • Doji On H4Suggests Indecision In Intraday Trade


NZD/USD has seen disappointing follow-through to a bearish candlestick formation. The Bearish Engulfing pattern has failed to receive confirmation from a successive-down day. This may suggest the Kiwis’ directionless sideways drift may continue. A break of the nearby 0.7730 floor would be required to offer a bearish bias and open the next leg lower for the currency.



NZD/USD: Bearish Pattern Sees Lackluster Response


NZD/USD Bearish Pattern Falls Flat As Consolidation Endures


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



The four hour chart is showing signs of indecision from traders in the form of a Doji formation. Yet an absence of more definitive reversal signals leaves a clear directional bias lacking.



NZD/USD: Doji Suggests Indecision In Intraday Trade


NZD/USD Bearish Pattern Falls Flat As Consolidation Endures


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 Bearish Pattern Falls Flat As Consolidation Endures

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