Aussie dollar’s continues streak Bull Run against Kiwi dollar has come into halt at around 1.1237 levels. That is where back-to-back “Long legged Dojis and Shooting Star” patterns occurred.
These candle patterns are highly bearish in nature that have evidenced the downswings that in turn have managed to break an important support at 1.12003 levels.
As a result, we could see current prices have slid below 7DMA.
At this juncture one can observe the leading oscillators bearish convergence to these declining rallies.
RSI right from overbought trajectory 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 the %D crossover above 80 levels which is again an overbought territory indicates the selling momentum for the day is intensified.
Same is the case on daily plotting, yesterday’s and today’s highs were rejected at sloping trend line.
However, this should not interpreted as trend reversal, the technical indications are just for intraday trading perspectives.
However, long term investors may have to wait for better clarity as you can see the stiff resistance at 1.1290 and 1.1416 levels on monthly charts.
As and when it hits these levels prices began tumbling with massive volumes evidences supply zone is intensive at this juncture.
Well, having said that we wrap up with concluding note, short term bears can speculate this pair whereas long term investors have to wait for safe play.
