The Kiwi may be set to give back some more of its recent gains as a Bearish Engulfing pattern appears to be forming on the daily. However, critically the key reversal signal requires the current candle to close and ideally a second down-day to offer confirmation. A pullback would likely be met by buying support at the psychologically-significant 0.8600 handle.
NZD/USD: Bearish Engulfing Pattern Forms On The Daily
Daily Chart - Created Using FXCM Marketscope 2.0
Examining the four hour chart; an Evening Star pattern is further evidence that the most recent bull-run for the Kiwi may have been exhausted.
NZD/USD: Bears Return Following Evening Star Pattern
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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