Mammoth volumes in AUD/NZD slumps confirms bearish run to extend
Before we begin with this analysis, please be informed what has happened to this pair after our previous analysis, please follow the below link and let's retrospect,
After a breach of baseline of descending triangle, the pair has shown their bearish effects.
On a monthly plotting, volumes on declining pace are mammoth, the massive volume build up on every price slump would confirm us the ongoing bearish trend is mightier than short-term upswings.
Subsequently, even on daily charts despite some bullish indications, we don't think the rally has the strength as it is traced out back to back bearish patterns such as shooting stars, spinning top and gravestone doji to test strong resistance levels at 1.0683.
The gravestone doji has been bearish pattern usually forms on uptrend which is an extremely helpful for traders visually see where resistance is likely located.
We can see safe bullish zone only above these levels as the prices could not sustain these levels several times in the recent past and have dropped way below 21DMA.
More significantly, prevailing bear run is so robust as the prices have again fallen below 21DMA on monthly charts with volume confirmation.
RSI on weekly is currently trending near 44.9561, while an attempt of %D crossover which is bearish on slow stochastic at 50 levels that signifies selling momentum may resume at any point in time.
Trade recommendation: The diagonal strips should be best suitable in current price behavior to take care of upswings in short term and long term downswings.
After a breach of baseline of descending triangle, the pair has shown their bearish effects.
On a monthly plotting, volumes on declining pace are mammoth, the massive volume build up on every price slump would confirm us the ongoing bearish trend is mightier than short-term upswings.
Subsequently, even on daily charts despite some bullish indications, we don't think the rally has the strength as it is traced out back to back bearish patterns such as shooting stars, spinning top and gravestone doji to test strong resistance levels at 1.0683.
The gravestone doji has been bearish pattern usually forms on uptrend which is an extremely helpful for traders visually see where resistance is likely located.
We can see safe bullish zone only above these levels as the prices could not sustain these levels several times in the recent past and have dropped way below 21DMA.
More significantly, prevailing bear run is so robust as the prices have again fallen below 21DMA on monthly charts with volume confirmation.
RSI on weekly is currently trending near 44.9561, while an attempt of %D crossover which is bearish on slow stochastic at 50 levels that signifies selling momentum may resume at any point in time.
Trade recommendation: The diagonal strips should be best suitable in current price behavior to take care of upswings in short term and long term downswings.
