Daily Forex Trading Strategy: The Kiwi Continues to Move Lower

NZD/USD (0.81377)

The Kiwi continues to lose ground. There are no bullish reversal signs and we continue to look at the floor near 0.8060/0.8050 support levels. A daily close below these levels will open the flood gates for 0.7750 then 0.7730 and lower.

The four hour chart, shown below, shows a similar picture to our daily chart. There are no signs of reversal patterns, there is a gravestone Doji plus a newly formed inverted hammer pointing at continued downward momentum. Looking at charts with longer timeframes, our conclusions remain. Traders might want to eye short positions until key reversal patterns develop.