Originally Published On PriceWorksFX.com
Yesterday's post stressed watching for the daily close. If it closed too sharply down, it would be treated as a support break and further downward pressure would take place. Only, it closed up yesterday. If it manages to repeat with another higher close followed by a smaller lower close bounce, we may finally be seeing a directional change in this pair. A conservative buy has been put in place just to extract some quick profits in this upswing.
It's a pretty good sign based on the candle strength. A lower tail followed by a large bullish body that almost matches the previous candle's size, buying pressure is resuming. While NZDUSD has been heavily oversold, two other pairs have been heavily overbought. The analysis will come in a later post so stay tuned!
