NZD/USD Breaks Below 0.8600 As Dark Cloud Cover Weighs On Prices
Talking Points
NZD/USD Technical Strategy: Shorts Preferred
Dark Cloud Coveron the daily warning of continued declines
Push below 0.8600 to open up next support level at 0.8500
The Dark Cloud Cover formation noted in recent candlesticks reports has resulted in extended weakness for NZD/USD. This follows on from a failure to crack the critical 0.8740 mark last week. With a shift in the trend taking place, a daily close below key support at 0.8600 would cement a bearish technical bias.
NZD/USD: Dark Cloud Cover Suggests Continued Declines
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; a Shooting Star formation near the critical 0.8700 handle prompted the bears to resurface. A Doji candlestick is now on the radar, which signals the bears are hesitant to push further and may be the precursor to bounce.
NZD/USD: Doji Suggests Hesitation By The Bears
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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