FxWirePro: NZD/USD price, volumes and open interest act as per bears whim fancy – Snap rallies for fresh short build ups

On daily plotting, the current prices slid below 21DMA.

The attempt of 21DMA crossing over 7DMA is deemed as the bearish signal, so we may see more weakness in this pair.

In this price behavior, volumes generation have been mammoth on both daily and monthly terms, on declining prices with rising price is the conformity to the further downtrend continuation.

To substantiate this stance, open interest in these downswings has been steady which is a conformation to the bearish rout is yet again.

Most importantly, RSI and Stochastic oscillators on both daily and monthly graphs are suggestive of further declines as they evidence downward convergence to the price dips, so previous consolidation pattern now seems to have exhausted at this level as the central banks’ monetary policy changes in both NZ and the US continents to stimulate this bearish pressures. 

While %D crossover at 80s which is overbought zone on monthly plotting is convincing that the selling momentum is intensified.

While daily MACD is also substantiating the same as the downtrend likely to prolong.

A shooting star plugs in at 0.7282 levels on monthly, i.e. right near consolidation phase (near 50% Fibos from the bottoms of major downtrend reversal), we now foresee more price declines as it also breaches below 38.2% Fibonacci levels on monthly terms.

The shooting star candlestick pattern occurred at peaks of 16-months highs which has more bearish potential. This bearish pattern has occurred at 50% Fibonacci retracements from the bottoms of 0.6196 levels. Please note that in our recent technical write up on this pair, we’ve already stated all these bearish indications and it’s been functioning as per our whim fancy.

The FxWirePro Dollar strength index gaining above 116 points after yesterday’s US retail sales that produces upbeat numbers at 0.8% versus forecasts at 0.6%.

Hence, considering above technical reasoning, one can eye on fresh short build ups snapping every rally for targets of 0.7049 and 0.6946 levels upon breach of the 1st target, maintain a strict stop loss of 0.7306 levels.