FxWirePro: AUD/NZD daily and weekly chart pack, swings loaded up with heaps of bearish patterns – Short mid-month futures with margins

On the daily chart, despite last three-four days bulls taking support at 1.0350 levels and attempting to bounce, the prices are restrained below 7DMA.

Well, considering the broader picture, the downswings have been slipping through sloping falling wedge formation, every price bounces were rejected at wedge resistance and every dips were supported at wedge baseline.

Bearish swings on weekly terms, form double top at around resistance of 1.0750 levels with top 1 at 1.0771 and top 2 at 1.0764 levels.

Bulls unlikely to break resistances of 1.0493 & 21EMA, instead, expect more slumps on bearish EMA crossover, momentum indicators to substantiate

Pivot points: 1.0750, 1.0771 on northwards and 1.0350, 1.0235 levels on southwards.

The current prices have remained well below EMAs, while MACD evidences bearish crossover below zero level, so we foresee bearish swings to be prolonged.

Both leading indicators (RSI & stochastic) on both time frames are signaling selling sentiments. RSI evidences the downward convergence with the ongoing price dips that signifies the strength in the bearish trend, (currently, RSI trending below 42 and 44 levels on daily and weekly terms respectively).

While stochastic curve at 20 levels which is oversold zone has not been evidencing any %K crossover, but the bearish intensity on weekly terms. This leading oscillator has been decisive.

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 1.0325, 1.03 or even 1.0235 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.