- 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.
NZD/USD: Breaks Key Support On Wave Of Selling Pressure
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.
NZD/USD: Intraday Action Reveals Bears Losing Steam
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.