The NZD/USD rallied today and seems motivated to jump much higher in the upcoming hours. Price ignored some important resistance levels and has reached another upside target. The greenback lost significant ground versus its rivals as the USDX has plunged much below the 93.81 static support and has invalidated the breakout above this level.

USDX accelerated the sell-off after the FOMC  and seems unstoppable on the short term. The index could approach and reach the 92.49 static support in the upcoming days, this situation will send the USD much lower versus all its rivals.

The current drop invalidated the Inverse Head and Shoulders pattern, however, remains to see what will happen when will reach the 92.77 level (right shoulder), a failure to close below this level could signal a bounce back.

The Kiwi could receive a helping hand from the New Zealand data, the Retail Sales could increase by 0.4% in the third quarter, less versus the 2.0% growth in the former reading period, while the Core Retail Sales could increase by 0.9%, less versus the 2.1% growth in the former reading period.

You can see that the rate has jumped much above the median line (ml) of the minor descending pitchfork and above the WL2 of the major descending pitchfork. Price has reached the 0.6885 static resistance, but remains to see if will have enough energy to take this out.

It seems like that the behavior could change as the rate could start to make higher lows, but is premature to say this. Technically is expected to approach and reach the upper median line (uml) of the minor descending pitchfork.

Price failed once again to reach the lower median line (lml) of the minor descending pitchfork, so the rebound is natural.