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

2014-10-01 07:38:47

(MENAFN- DailyFX) DailyFX.com - r>

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

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

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

" style="text-align:justify"> To receive David’s analysis directly via email please sign up here.

" style="text-align:justify"> Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

original source

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.