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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