News Column

NZD/USD Eyes Further Gains Following Bullish Candlestick

May 2, 2014

David de Ferranti

Talking Points

  • NZD/USD Technical Strategy: Longs Preferred
  • Morning Star formation leads recovery in prices
  • Break of resistance at 0.8600 opens further gains

    The Kiwi has broken above critical resistance at 0.8600 in recent trading with the pair forming a Morning Star pattern. While admittedly a little lopsided, the bullish candlestick formation suggests an extended recovery for the pair. A push above nearby resistance at 0.8635 would open an advance on the 2014 highs near 0.8740.

    NZD/USD: Recovery May Continue As Morning Star Forms

    NZD/USD Eyes Further Gains Following Bullish Candlestick

    Examining the four hour chart reveals signs of hesitation from the bulls near the 0.8635 mark which has prompted the emergence of an Evening Star formation. While typically considered a bearish reversal signal, it has failed to receive confirmation which precludes the suggestion of a correction at this stage.

    NZD/USD: Evening Star Suggests Selling Pressure Near 0.8635

    NZD/USD Eyes Further Gains Following Bullish Candlestick

    Follow David on Twitter: @Davidde

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

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    Source: DailyFx

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