The NZD/USD rallies and looks determined to hit fresh new highs in the upcoming period, has managed to jump above a downtrend line, but we still need a confirmation that will climb much higher. We have a  breakout in play, most likely will be a valid breakout as the USDX is going down like a rock as the United States data have disappointed. We may have a buying opportunity these days if the rate will come back to test and retest the broken resistance levels, I’ve said in the previous articles that the greenback will decrease versus all its rivals if the USDX will fail to stabilize above the 97.59 static resistance.

USDX dropped also below two important dynamic support levels, so is somehow expected to drop much deeper in the upcoming days, a further drop will punish the greenback.

The USD has taken a hit from Core Durable Goods Orders, which increased only by 0.1% in May, less versus the 0.4% estimate, the economic indicator increased again  after a 2-month decrease, but failed to boost the greenback. Moreover the Durable Goods Orders dropped by 1.1% in the previous month, much more versus the 0.5% estimate and more versus the 0.8% drop in the former reading period.

The Kiwi is strongly bullish and is dragging the pair higher, has broken above the confluence area formed at the intersection between the 0.7277 level with the red downtrend line, a valid breakout will accelerate the upside momentum.

We’ll have a buying opportunity if the rate will come back down to test and retest the broken levels, could find resistance also at the 0.7324 level, but technically is expected to take out this level and to resume the upside movement.  Maybe we’ll have a minor consolidation before will increase further, could try to recapture more directional energy before will approach the previous highs from 0.7375, 0.7402 and the 0.7484 swing high.

I’ve said in the previous articles that the perspective remains bullish as long as is trading above the fourth warning line (wl4) of the former ascending pitchfork.