NZD/USD Retreats As Dojis Signal Hesitation From The Bulls

Talking Points

  • NZD/USD Technical Strategy: Pending Short
  • Dojis On The Daily Highlighted Hesitation
  • Close Below 0.8400 To Open The 0.8260 Floor

NZD/USD has faced renewed selling pressure after a pair of Doji candlesticks on the daily suggested conviction was lacking amongst the bulls. This sets the pair up for a make-or-break moment as it descends on the 0.8400 floor. A push below the nearby barrier would set the scene for a descent towards the mid-February lows near 0.8260. Conversely a daily close above the pair’s recent highs at 0.8530 would be required to mark a small base.

NZD/USD: Dojis Highlight Hesitation From The Bulls To Lead The Kiwi Higher

NZD/USD Retreats As Dojis Signal Hesitation From The Bulls

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

The four hour chart paints a divergent picture to the daily. A Harami candlestick formation near the 0.8420 floor warns of a corrective bounce over the remainder of the session. However, the signal lacks confirmation from a successive up-period at this stage suggesting some doubt of a sustained advance is warranted.

NZD/USD: Harami Warns Of Intraday Bounce If Confirmed

NZD/USD Retreats As Dojis Signal Hesitation From The Bulls

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

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

This entry was posted in Binary Options Signals Related News and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *