The currency pair increased significantly and is almost to reach and retest a strong upside obstacle. Price is pressuring a static resistance as well right now, but it could slip lower in the upcoming days if the dollar index will have enough directional energy to resume the upside movement.

USDX rallied on the short term and seems motivated to close the day in the buyer’s territory and to force the USD to dominate the currency market on the short term.

The NZD/USD moves somehow sideways on the Daily chart, but I really hope that we’ll have a significant move very soon. The pair could turn to the downside again if the USDX will make new highs, an increase above the 91.00 psychological level will signal a further increase.

You can see that the dollar index has jumped higher and now is located above the warning line (wl1) of the minor ascending pitchfork. It could climb much higher if will stay above this line, the next upside target will be at the median line (ml) of the black descending pitchfork. A larger rebound will be confirmed only after a valid breakout above the median line (ml) and above the sliding parallel line (sl) of the major blue ascending pitchfork.

The rate has come back and has tried to retest the lower median line (lml) of the minor ascending pitchfork, but failed till now. It has climbed above the 61.8% retracement level, but failed to stay there, a failure to jump above the lower median line (lml)  will send the rate below the sliding line (sl).

A valid breakdown below the  sliding line (sl) will confirm a larger corrective phase. You should know that it will increase further if will close and will stabilize within the ascending pitchfork’s body.