The currency pair drops like a rock on the short term and is almost to reach another downside target. Price is trading in the red even if the USDX is trading in the red as well. The Kiwi plunged after the RBNZ and could drop much deeper if the USD will receive a strong support from the United States data.

The dollar index has decreased a little today and has tried to retest the broken resistance levels before will climb much higher. The minor retreat is natural after the impressive rally. USDX is trading below the 93.00 psychological level, but it could come back above it very soon if the near-term support level will hold.

The rate has made a huge gap down before the RBNZ and it has resumed the bearish momentum after the Official Cash Rate was released. The interest rate was maintained steady at 1.75%, matching expectations.

The Kiwi dropped further and wasn’t impressed by the RBNZ Gov Orr speech. The United States CPI is expected to increase by 0.3% in April versus a 0.1% drop in March, while the Core CPI could increase by 0.2%, matching the 0.2% growth in the former reading period.

The Unemployment Claims could increase from 211K to 219K in the previous week, a larger increase could weaken the USD.

Price plunged below the 150% Fibonacci line of the major ascending pitchfork and now is almost to reach the median line (ml) of the descending pitchfork. The rate has squeezed a little in the last two hours, but the perspective remains bearish as the rate is still under massive selling pressure.

NZD/USD could increase again, only if will fail to touch the median line. Price will move higher very quick if will fail to close near the median line (ml).

The major downside movement is was somehow expected and is natural after the failure to reach the median line (ML) of the ascending pitchfork.