The Kiwi Retreats from 0.8000

NZD/USD (0.7954)

The Kiwi has been falling back from its high at 0.8000 and we failed to confirm the bullish candlestick. Looking at the below daily MT 4 chart, we now see a bearish signal called a hanging man candlestick. We are now firmly below the key technical level of 0.8000 without bullish reversals signals. This tells us we could be in a bit of trouble and another close above 0.80 is not likely. If that were to happen, then we would challenge the next key level near 0.8050/0.8060.

Looking at the 4 hour MT4 chart below, we note some pretty messy trading action. There are no clear signals since the bullish engulfing. Since then, it has been quite erratic to say the least. Should we recover, expect stiff resistance and selling pressure near 0.7990.