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23 Oct 2019
NZD/USD technical analysis: Holds above 0.64, Tuesday's low is key support
- NZD/USD created a Doji candle on Tuesday, signaling indecision in the market.
- A break below Doji's low would confirm a bearish reversal.
NZD/USD is currently trading largely unchanged on the day at 0.6408.
The pair clocked a high and low of 0.6436 and 0.6399, respectively, on Tuesday and ended the day on a flat note at 0.6405 on Tuesday, forming a Doji candle with a long upper shadow.
The Doji candle is widely considered a sign of indecision in the market. Therefore, the immediate bullish outlook stands neutralized.
Acceptance below Doji's low of 0.6399 would mean the period of indecision has ended with a victory for the bears. Put simply, it would confirm a bearish reversal and shift risk in favor of a drop to 0.6330-0.63.
On the other hand, a close above 0.6436 (Tuesday's high) is needed to revive the bullish view.
Daily chart
Trend: Neutral
Technical levels