The price rallied aggressively in the yesterday’s session, but failed to stay above a major dynamic resistance. Now is trading in the red  and retested a static support (resistance turned into support). Technically is still expected to resume the minor rebound, but we need a confirmation that the rate will climb much higher on the short term.

The rate decreased from the 0.7433 yesterday’s high as the USDX has jumped higher after the FOMC. The dollar index is trading in the green on the short term and tries to take out the horizontal resistance from the 92.49 level. A valid breakout above this upside obstacle will signal a further increase. Technically, the USDX is expected to climb further after a breakout from a minor descending channel. I’ve said in the last days that the behavior could change if the rate will start to make higher lows.

The NZD dropped versus the greenback even if the New Zealand GDP has come in line with expectations, has increased by 0.8% in the second quarter, beating the 0.6% estimate. Moreover, the Visitor Arrivals dropped by 0.3%, less versus the 5.3% drop in the former reading period, the Credit Card Spending will be released later.

The currency pair rallied aggressively and jumped much above the third warning line (WL3) of the major descending pitchfork, but the bulls weren’t strong enough to keep the price above it. Price only retested the WL3 in the morning and now is trading in the red, but is premature to say that we’ll have a larger drop.

We may have a selling opportunity if the rate will slip below the 0.7324 level and will retest the WL3, the next major downside target will be at the fifth warning line (wl5).

I’ve said in the last days that a valid breakout above the WL3 will confirm a further increase, a major drop will be confirmed only below the fifth warning line (wl5) of the ascending pitchfork. NZD/USD will drop much deeper if the United States data will come in better today.