Talking Points
- NZD/USD Technical Strategy: Shorts Preferred
- Piercing Line Pattern Awaits Confirmation
- Breach of 0.7730 Needed Open ’12 Low Near 0.7450
NZD/USD is in the process of producing a Piercing Line pattern on the daily after bouncing off the 0.7730 floor. The close of the current candle and an ensuing up-day would be required to suggest a base. However, within the context of a broader downtrend on the daily a sustained advance may prove difficult. A close below the pair’s recent lows would set the scene for a descent on the 2012 low near 0.7450.
NZD/USD: Piercing Line Pattern Awaiting Confirmation Near Recent Lows
The four hour timeframe offered an early indication of exhaustion by the bears in the form of an Inverted Hammer. While considered a key reversal pattern follow-through may prove challenging in light of the broader bearish backdrop afforded by the daily.
NZD/USD: Inverted Hammer Suggested Bears Were Losing Their Grip
