FxWirePro: AUD/NZD bull swings to go sideways as doji appears at stiff resistances, major downtrend remains intact despite potential bullish engulfing pattern

The bulls have reacted as anticipated by FxWirePro; before we begin with this write-up please go through below weblink for our previous article on this pair:

http://www.econotimes.com/FxWirePro-AUD-NZD-forms-hammer-after-dragonfly-doji-more-likely-to-extend-rallies-major-downtrend-remains-intact--boundary-binaries-to-speculate-528758

On the daily chart, despite the prevailing uptrend last three days bulls have been struggling to break resistance at 1.0705 levels, we see immediate resistances at 1.0705 and 1.0750 levels where the prices are restrained at that juncture and momentum in upswings likely to shrink away.

As a result, a long-legged doji occurred yesterday at 1.0663 levels on shrinking momentum in price upswings at stiff resistance at 1.0704.

Well, considering the broader picture, the downswings have been slipping through sloping channel, every price bounces were rejected either at channel resistance or at EMAs and every dip were supported at channel baseline.

Bulls seem to be unlikely to break channel resistances despite this month’s potential bullish engulfing pattern.

The current prices have gone above EMAs (but not bullish signals), while MACD on dailies indicates upswings to prolong but on monthly charts evidences indecisiveness remaining in bearish trajectory below zero level, so we foresee bearish swings to be prolonged.

Both leading indicators (RSI & stochastic) on both time frames are signaling momentary buying sentiments. RSI evidences the upward convergence with the ongoing price spikes that signifies the strength in the bullish trend, (currently, RSI trending at 70 level which is signaling overbought pressures on daily and on monthly terms also indicates momentary bullish sentiments).

While stochastic curve at 20 levels which is oversold zone has been evidencing any %K crossover on monthlies and overbought pressures on dailies. But this leading oscillator has been little indecisive.

So, the momentum in interim rallies is suspected as bears are resuming exactly at above-mentioned resistances.

Well, having said that we wrap up with concluding note, short-term bulls can speculate this pair whereas long-term investors at current juncture contemplating above bearish indications, we advocate shorting futures contract of mid-month or near month expiries for target towards 1.0527, 1.0340 or even 1.0156 levels cannot be ruled out upon breach of 1sttwo targets.

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