The NZD/USD has erased most of yesterday’s gain following a failure to break above the October 2013 highs near 0.8545. This has resulted in a Shooting Star formation for the pair that may be hinting at a bearish reversal. However, caution is suggested here, given the Kiwi has shrugged off 2 prior reversal signals offered by Shooting Stars near key resistance levels. A daily close back below the 0.8500 handle may help validate the signal and could open up a larger correction to the former-range top at 0.8400.
NZD/USD: Shooting Star Awaits Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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