NZD/USD traded returned and forth on Wednesday, producing a Doji candle on the each day chart.
A Doji, with its lengthy wicks and the negligible physique representing a flat close, is viewed a signal of indecision in the market place. In NZD/USD’s case, the candle has seemed following a rally from 0.6589 to 0.7084 and suggests consumer exhaustion. The 14-day Relative Strength Index is echoing a comparable message.
As such, the pair appears susceptible to a pullback. The likelihood of a drawdown would amplify if the pair ends Thursday’s underneath Wednesday’s low of 0.7032.
Alternatively, a shut above Thursday’s excessive of 0.7084 would verify a bullish Doji continuation sample – a continuation of the uptrend from 0.6589.