FxWirePro: AUD/NZD whipsaws 7DMA, major trend seems weaker after breaching supports at 1.0568

AUD/NZD bulls seem to have exhausted at channel resistance, spinning top and long legged doji send bearish signals at this juncture.

Any spikes in Aussie dollar are absolutely suppressed by Kiwi dollar ever since the pair has dropped from the resistance of 1.1264 levels (you can observe every jump is suppressed by active bears).

But from the last couple of days, the pair has been evidenced a whipsaws pattern on 7DMA.

So we reckon, even though the daily trend has been drifting in sideways (upper limits at 1.0568 and lower limits at 1.0408 levels), short upon breach the range base.

As stated earlier, back-to-back “spinning and long legged doji” patterns occurred at 1.0472 levels.

These candle patterns are highly bearish in nature as there are corresponding confirmed volumes that have occurred at channel resistance levels most importantly.

Most notably, on monthly plotting, it has broken below strong supports at 1.0568 levels since last October.

As a result, we could see current prices have slid below DMAs as well as EMAs.

At this juncture, one can observe the leading oscillators have been indecisive but slightly bearish convergence to these declining rallies.

RSI has been remained in oversold zone and been converging downwards to these bearish effects that signal the strength in these selling sentiments in the spot.

While, stochastic on the other hand has halted in oversold zone and there are no traces of %K crossover indicates the selling momentum for the day is still on.

Same is the case with MACD that has halted in bearish trajectory but signals slight bounces but should not be interpreted as long opportunities.

Hence, at spot ref: 1.0446 levels using any abrupt rallies one can go short in the near month futures for targets of 75-100 pips southwards.