The rate plunges and could reach fresh new lows in the upcoming hours. It is almost to reach a dynamic support line, it remains to see if it will hold.

The dollar has taken the lead and drives the rate down as the USDX bounced back, even if the United States data have failed to impress today. I’ve said yesterday that the USD needs strong support from the US data to be able to recover versus its rivals.

It remains to see how long the USDX will be because is still trapped below some very important resistance levels.

The NZD increased a little in the morning, but the bears have stepped in and have taken full control. The New Zealand CPI increased more than expected in the first quarter. It has increased by 0.5%, beating the 0.4% estimate and the 0.1% growth in the former reading period.

The greenback rallied after the US data release, the Unemployment Claims were reported at 232K in the previous week, but higher versus the 230K estimate. The Cb Leading Index increased by 0.3%, matching the 0.3% estimate. The USD received support from the Philly Fed Manufacturing Index, which increased from 22.3 to 23.2 points, more versus the 20.8 estimate.

The rate dropped significantly after the failure to reach and retest the median line (ml) of the ascending pitchfork. A valid breakdown below the sliding line (sl) and below the 61.8% Fibonacci level will open the door for a further drop.

It will turn to the upside again, only if the USDX will drop again and will erase the latest gains. NZD/USD moves in range on the short term, it could resume this range in the upcoming period because right now is hard to believe that we’ll have a breakout from it.