NZD/USD Woes May Continue With Reversal Signals Lacking
Dailyfx | Jul 24, 2014 11:59AM ET
- NZD/USD Technical Strategy: Shorts Preferred
- Wave of selling pressure yields break below 0.8650
- Absence of bullish candlesticks casts doubt on a recovery
NZD/USD’s break below 0.8650 alongside a void of bullish reversal signals suggests the pair’s woes may be set to continue. The breach of the noteworthy support level is made more significant by a spike in trading volume, suggesting a sufficient wave of selling pressure that could carry the Kiwi lower. However, given the magnitude of declines for the pair, a corrective bounce should not be precluded. This would afford new entries into short positions.
Daily Chart - Created Using FXCM Marketscope 2.0,
Similarly to the daily chart an absence of key reversal signals casts doubt on a recovery for the pair. However, a Doji forming near 0.8570 suggests some hesitation from the bears to push the pair lower, which could be the precursor to a consolidation over the remainder of the session.
Four Hour Chart - Created Using FXCM Marketscope 2.0
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By David de Ferranti, Currency Analyst, DailyFX
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