FxWirePro: AUD/NZD forms shooting star at stiff resistance at 1.0750, stay short below 7DMA as bullish momentum seems to have exhausted

If you have to plot daily charts, the trend drifting in sideways, shooting star appears at the resistance of 1.0750 to resume bear swings.

The previous upswings have consistently been rejecting to the push southwards as and when it hits resistance of 1.0750 levels.

That is where back-to-back “Shooting Star” patterns occurred and leading oscillators diverge to the previous rallies.

These candle patterns are highly bearish in nature that too have occurred at resistance levels to evidence the downswings below 7DMA.

As a result, we see no momentum in bull swings but the same should not be perceived as a shorting opportunity. For safe trading, we advise waiting for the pair to drift below well below 7DMA decisively.

On a broader perspective, the major trend seems still weaker ahead of next month’s RBA monetary policy, RSI on monthly has been converging downwards to these bearish effects that signal the strength in these selling sentiments in the spot.

While, stochastic on the other hand evidences weakness as there is no clear %k crossover even at the oversold region.

MACD has remained below zero, so there could be chances for cautious or shrewd bears may resume and wipe off previous gains at any time.

Hence, at spot ref: 1.0671 levels aggressive bears can go short this near futures for targets of 80-100 pips southwards with a stiff resistance at 1.0750 levels, thereby one can eye on ideal risk reward ratio.