A Doji is a candlestick trading pattern that is commonly referred to in technical analysis circles. A Doji is formed when a very tight trading range occurs for a particular time period. For example, if you are analysing daily charts and the trading range for a particular day was small relative to average this would constitute a Doji being formed. The open price will be close to identical to the closing price with the daily fluctuations being minimal.
A Doji means that neither buyers nor sellers won the day and often occurs when there is indecision in the market place.
NZD/USD produced the third doji in a row on Thursday, just below the 0.8000 level. With the EU's meetings over the weekend, the trading world is waiting to see the outcome of these important summits. However, the fact that the Kiwi can't retake the 0.8000 level could show the path of least resistance is down. AUD/USD is a similar chart, with the range being between 1.01 and 1.03 or so. The pair is a "risk on" trade from the long side, and with the recent headlines, it isn't hard to see why it has been "stuck". Both of these pairs look ready to move, but probably won't until Monday morning. Play video >>
AUD/USD had a whippy day during the Tuesday session as China reported lower than expected GDP numbers, sending the pair down - The NZD/USD sits just below the 0.8000 level and formed a long-legged doji as well. Play video >>
AUD/USD had a fairly benign day as it sits just below the parity level. GBP/USD fell from the top of it's recent consolidation area. The 1.57 level continues to act as resistance, and with the Bank of England going into QE mode again, this pair should continue to act weak. Play video >>
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