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NZD/USD: Downside Risks Remain

Published 09/11/2014, 08:11 AM
Updated 07/09/2023, 06:31 AM
NZD/USD
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Talking Points

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

The 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 Daily Chart

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 4 Hourly Chart

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