The currency pair dropped significantly today and seems motivated to hit fresh new lows in the upcoming days. The USD has taken the full control on the short term and could continue to increase in the upcoming period if the USDX will climb much higher. The USDX has managed to rebound after the yesterday’s drop and now is located above the Thursday’s high. The dollar index has increased surprisingly today as we have some poor data from the United States.

Technically, it is somehow expected to drop further on the short term after the failure to make new highs. NZD/USD is pressuring a dynamic support right now, a valid breakdown will confirm a further drop, it could be attracted by a dynamic support, remains to see how will react when will touch this.

The US Core Durable Goods Orders dropped by 0.3% in January, even if the specialists have expected to see a 0.4% growth, the Durable Goods Orders dropped by 3.7%, more versus the 2.4% estimate, while the Goods Trade Balance dropped further to -74.4B, from -72.3B.

The greenback rallied as the CB Consumer Confidence was reported at 130.8B, much above the 126.2 estimate and versus the 124.3 growth in the former reading period, while the Richmond Manufacturing Index increased from 14 to 28 points, beating the 15 estimate.

Price dropped sharply today and resumed the bearish movement, the next downside target will be at the median line (ml) of the minor descending pitchfork. It could be attracted by the lower median line (LML) of the ascending pitchfork as well if the USDX will resume the upside movement. The perspective will remain bearish as long as the rate will be trapped within the minor descending pitchfork. A rebound could come only if will fail to reach the median line (ml) of the descending pitchfork.

Is hard to believe that we’ll have a larger rebound at this moment, only the fundamental factors could send it higher.