After two months of rallies, we are now observing considerable declines, that is exactly at 21-EMAs (see monthly chart). While the daily chart evidences bearish crossover (see for 7DMA crossing below 21DMA).
On the daily chart, amid the last week’s bearish journey, bulls have bounced back today to the day highs of 1.0504 levels but this should not be deemed as long opportunities.
But on the contrary, the bulls have halted as upswings restrained at previous neckline support, current price well below 7DMA, likely to make equidistance travel on downside (2.38%) Bulls halted as upswings restrained at previous neckline support, current price well below 7DMA, likely to make equidistance travel on downside (2.38%).
Pivot points: 1.0705, 1.0588 and 1.0493 levels.
Although Aussie dollar has been recovering its price losses against Kiwi dollar, bears interest to slide below 1.0493 and retest the recent lows of 1.0235 cannot be ruled out (whenever the pivot points breach or reject 2.38% distance).
While MACD on daily terms also evidences bearish crossover, so we foresee bearish swings to be prolonged.
One can observe the distance (2.39%) once bears broke down below the neckline of the double top, they have travelled equidistance (2.38%) and taken support exactly at that level.
As the current prices have slid below 7DMA, one should not be panicky with rallies, both leading indicators (RSI & stochastic) are signaling selling sentiments on monthly and daily graphs.
The long-term investors may have to wait for better clarity for reversals.
Well, having said that we wrap up with a concluding note, we uphold the opportunities for bears in short term, and hence, every rally would add leveraging impact on daily traders’ portfolios if they chose digital puts. Whereas the long-term investors have to wait for safe play.
