The currency pair dropped significantly today and resumed the sell-off. It seems to heavy to be stopped on the short term, so the price should reach fresh new lows in the upcoming days. Price continued to drop as the USDX has finally managed to start an upside momentum.

The dollar index rallies on the short-term and should approach and reach new highs in the upcoming days, this situation will force the USD to dominate the currency market. I’ve said in the last days that the behavior could change on the USDX because the rate has started to make higher lows.

USDX jumped above the 93.00 psychological level, signaling that the bulls are in full control and can lead it towards the next upside target from the 93.81 static resistance.

The Kiwi drops aggressively as the New Zealand Trade Balance has come in worse than expected, the indicator dropped deep in the negative territory, it was reported at -1235M, much below the -825M estimate. The Trade Balance plunged from 98M in the former reading period, while the ANZ Business Confidence was reported at 0.0, much below the 18.3  in the previous reading period.

The USD continues to stay higher versus its counterparts, even if the high impact data have disappointed earlier.

Price drops like a rock and seems unstoppable right now. Has touched the 50% retracement level and could approach the fifth warning line (wl5) of the ascending pitchfork, where he may find temporary support.

I’ve said in the last reports that we may have another leg lower if the rate will be rejected by the third warning line (WL3) of the descending pitchfork. You can see that we had a false breakout above the WL3, so the current drop is natural. The next downside target will be at the wl5, but technically is somehow expected to take it out if will touch it. Will drop much deeper if the USDX will climb much higher in the upcoming period.