FxWirePro: EUR/NZD rejects resistance at 1.6710 but whipsaws with shooting star formation, bears seeking opportunities in sideways

Euro's tepid upswings against Kiwi dollar is constrained at 1.6710 levels, it has been creeping sideways to become an underperformer from couple of days.

"Shooting star" occurs at 1.6566 to signify weakness, even though prices are attempting bounce but  have remained well below 7DMA.

Upside potential restrained at resistance 1.6710, momentum in previous rallies reduced, prices whipsawing in sideways at this resistance level, long term downtrend seems intact.

EURNZD has dropped almost 5.93% in last 6 months (from highs of 1.7649) amid tug of war between bulls and bears from last three months.

On a broader perspective, It had broken crucial supports at 1.7068 levels, it is now acting that as a stiff resistance (see monthly chart), we've seen failure swings at this juncture from last two months (see yellow coloured circle on monthly chart).

The convergence of leading oscillator (RSI) to sideway to slightly downward trend has been observed when prices were rallying at peaks no convincing momentum is seen, instead volumes were raising on price declines, this would be also treated as the upswings were losing momentum while selling interest is seen in this pair.

Massive volumes on declining prices (see monthly graphs) are conformity to the bearish trend, any upswings would be deemed as shorting opportunity rather than fresh long build up for long term investors.

Hence, we could foresee the pair's prospect in medium term perspectives in sideway trend to mildly bearish bias.