NZD/USD Near Key Support With Hanging Man Offering Bearish Signal

• NZD/USD Technical Strategy: Sidelines Preferred
• Hanging Man hints at a reversal to support at 0.8700
• Awaiting close of candle on four hour chart to offer signal

NZD/USD could be primed for a further pullback following the emergence of a Hanging Man pattern on the daily. A push below support at 0.8700 would be seen as a bearish signal and pave the way for a retreat to 0.8500.

NZD/USD: Hanging Man Offers Bearish Signal Near Key Resistance

The four hour chart reveals the emergence of a narrow range between 0.8720 and 0.8790. Typically such thin corridors do not persist for extended periods. While a Morning Star formation appears to be forming, the third candle needs to close before offering a bullish reversal signal.

NZD/USD: Narrow Range Forms As Traders Await Guidance