NZD/USD Downside Risks Remain With Reversal Candlesticks Lacking

Talking Points

  • NZD/USD Technical Strategy: Shorts Preferred
  • Recovery Questionable With Reversal Patterns Lacking
  • Daily Close Below 0.8260 Opens Grind Towards 0.8060

NZD/USD has extended its recent declines with a lack of bullish candles warning of further weakness ahead. Against the backdrop of a core downtrend on the daily this opens the prospect of a grind towards the February lows near 0.8060.

NZD/USD: Left Lacking Bullish Signals On Slide Below Support

NZD/USD Downside Risks Remain With Reversal Candlesticks Lacking

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

The four hour chart tells a similar narrative to the daily with a void of key reversal patterns suggesting the risks remain skewed to the downside. Given the context afforded by longer timeframes, this leaves shorts preferred.

NZD/USD: Absence of Key Reversal Patterns Casts Doubt On A Recovery

NZD/USD Downside Risks Remain With Reversal Candlesticks Lacking

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

By David de Ferranti, Currency Analyst, DailyFX

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