NZD/USD increased today and jumped above the 0.7317 yesterday’s high. Is trading in the green as the USD was weakened by the FOMC Meeting Minutes. The USD bulls were disappointed and have lost control on the short term.

USDX drops after the yesterday’s bearish candle, but we’ll see how long this will be because the behavior has changed on the short term (higher lows). Unfortunately, the USDX has made another false breakout above the 93.81 static resistance, but technically could still jump above this level because is oversold. Will increase further as long as have enough energy to stay above the 93.00 psychological level.

I’ve said in the previous weeks that we may have an accumulation above the 92.49 major static support before will really start a broader rebound.

The Kiwi received support also from the New Zealand PPI Input rose by 1.4% in Q2, beating the 0.9% estimate and the 0.8% growth in the former reading period, while the PPI Output surged by 1.3%, exceeding the 0.7% estimate.

The USD will pick up again if the United States data will come in line with expectations or better, the US is to release the Unemployment Claims, Philly Fed Manufacturing Index, Capacity Utilization Rate and the Industrial Production.

Price increased and now is pressuring the 0.7324 static resistance, only  valid breakout above this level will confirm a further increase. The breakdown below the fourth warning line (wl4) will be invalidated if will stabilize above the mentioned horizontal resistance. We may have a buying opportunity if will retest the 0.7324 and the fourth warning line (wl4). The major upside target will be at the third warning line (WL3) of the former descending pitchfork.

The corrective phase will resume if the rate will slip below the wl4 and will stabilize below the 38.2% retracement level. Will drop only if the USDX will increase again, it will do this if the United States data will impress later, otherwise a further drop is favored.