FxWirePro: More downside potential leftover on AUD/NZD’s gravestone doji

The gravestone doji has been bearish pattern usually forms on uptrend which is an extremely helpful for traders visually see where resistance and supply is likely located. After an uptrend, the Gravestone Doji can signal to traders that the uptrend could be over and that long positions should probably be exited.

On a weekly charting, we had earlier traced out bearish gravestone doji pattern around 1.1218 levels, and leading oscillators are still substantiating current price dips.

But other indicators should be used in conjunction with the Gravestone Doji pattern to determine an actual sell signal. A potential trigger could be a break of the upward trendline support. And for now with a breach of 1.0920 strong support on a daily charts we could foresee the strong next support only at 1.0820 levels.

Until then we undoubtedly continue to maintain our bearish stance on this pair as the prices have been well below moving average curve that signals us long term bearish trend is on the cards.

The pair has pretty much achieved our earlier target at 1.0949, we could now foresee and maintain our next target for this pair is at 1.0878 levels towards south and the current price is pretty much near these levels.

RSI on weekly is currently trending near 48.7055, while %D crossover on slow stochastic still maintains even below 20 levels that signifies bearish momentum is continuing. Daily prices are well below moving average curve.

Trade recommendation: Last month's diagonal strips have taken care of upswings and downswings and yielded handsome returns and we are firm onto continue with the same.