The emergence of a Southern doji pattern on the NZD/USD weekly chart suggests a certain degree of exhaustion in the market.
During a decline, this candlestick pattern usually changes the market’s short-term trend from down to neutral. In this case, with the RSI below 40% on this time frame, the likelihood of a reversal from oversold territory increases.
Additionally, an ADX above 30 is indicative of a persistent trend at least. Technically oriented position traders may use this signal to liquidate shorts, sell puts, and move down stops.
(Market News Provided by FXstreet)