FxWirePro: AUD/NZD bull swings seem edgy at 7-DMA but weekly shooting star in conformity to major downtrend

On the daily chart, despite the attempts of bounces above 7DMA, the prices are restrained below 7DMA from last 3-4 days. Gravestone doji evidences price dips that have gone below 7DMAs.

Well, considering the broader picture, the downswings have been slipping through sloping channel, Major downtrend sliding after rejecting resistance of sloping channel, current prices still below 21EMA.

Shooting star formation on weekly terms has also evidenced bearish swings in this week which is line with the major downtrend.

For now, the bulls seem unlikely to break resistances of 1.0507 & 7EMA, instead, expect more slumps as momentum indicators to substantiate this bearish sentiment.

While MACD remaining below zero level is an indication of the bearish swings to be prolonged.

Both leading indicators (RSI & stochastic) on all time frames are signaling selling sentiments. RSI evidences the downward convergence with the ongoing price dips that signifies the strength in the bearish trend.

While stochastic curve near 80 levels which is oversold zone has been evidencing %d crossover, bearish intensity on daily terms but this leading oscillator has been indecisive on monthly plotting.

Well, having said that we wrap up with concluding note, at current juncture contemplating above bearish indications, we advocate shorting futures contract of mid-month or near month expiries for target towards 1.0455, 1.0358 or even 1.0235 levels cannot be ruled out upon breach of 1st two targets.

Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.