FxWirePro: NZD/USD back-to-back shooting stars at stiff resistance and momentum oscillators indicate weakness in interim spikes of major trend

The price behavior of this pair has been drifting in non-directional trend, you could very well observe as and when the prices head towards stiff resistances of 0.7244 levels, the prices are tumbled after the failure swings at this juncture.

That’s where shooting star pattern candles have occurred at 0.7229 and 0.7238 levels (daily chart) and at 0.7283 levels on monthly plotting.

Well, although there has been a mild bullish sentiment yesterday, it was not able to sustain above resistance of 0.7244 levels, thus, any abrupt rallies are unlikely to show stern moves above as we’ve traced out bearish momentum.

Most importantly watch for the day, if there is no momentum achieved from the current levels then we foresee the most likely extension of bearish swings. Later on, even if there are any abrupt upswings they should be restrained below 7DMAs again.

On the broader perspective, we noticed the recent upswings in consolidation phase could see stiff resistance at 0.7409 levels, please be advised that more dips seem likely on failure swings and bearish EMA crossover on monthly terms.

Momentum study: To substantiate the bearish stance available on daily terms, both leading indicators (RSI & stochastic curves) in conjunction with MACD that evidence the bearish convergence that signals strength and momentum in selling interests.

Trade tips:

Contemplating bearish sentiment, on trading perspective, it is advisable to buy at spot ref: 0.7220 (while articulating) we advocate one touch binary puts for intraday speculators in an on-going bearish environment that are likely to fetch leveraged yields as we observe 1D IVs are spiking higher with sky rocketed pace.