Talking Points

• NZD/USD Technical Strategy: Sidelines Preferred
• Piercing LinePattern Awaiting Confirmation
• Breach of 0.7730 Needed Open ’12 Low Near 0.7450

NZD/USD’s latest reversal pattern may see another limited response from traders as the pair struggles to meaningfully lift from the 0.7730 floor. A daily close below the nearby barrier would set the scene for a descent on the 2012 low near 0.7450.

NZD/USD: Another Reversal Signal Awaiting Confirmation

Daily Chart - Created Using FXCM Marketscope 2.0 Volume Indicator Available Here

A congestion zone appears to have formed between 0.7740 and 0.7907 in intraday trade. A medley of short body candles and a Doji formation suggests upside momentum may have stalled. However with key reversal candlesticks lacking a correction is questionable.

NZD/USD: Dojis Highlight Hesitation Within “Congestion Zone”

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

By David de Ferranti Currency Analyst DailyFX

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