- NZD/USD on Monday created a bullish inside bar candle, signaling seller exhaustion at four-year lows.
- A close above Monday’s high is needed to confirm a bullish reversal.
NZD/USD is currently trading largely unchanged on the day near 0.6295, representing marginal losses on the day, having hit a high of 0.6302 earlier today.
The pair is attempting gains amid the uptick in the US equity futures. As of writing, the S&P 500 futures are reporting a 0.28% gain.
Today’s close pivotal
The pair created a bullish inside bar candlestick pattern on Monday. That candle is widely considered as an early warning of a potential bullish reversal, especially when it appears after prolonged sell-off or at multi-month lows.
In NZD’s case, that candle has appeared at the lowest level since September 2015 and represents seller exhaustion.
A bullish reversal, however, could be confirmed only if the pair closes today above the inside bar’s high of 0.6299.
The bears, however, could make a strong comeback if the pair ends today below 0.6258 (Monday’s low).
Daily chart
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Trend: Bulls need close above 0.6299
Technical levels
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