The NZD/USD has extended the sell-off and has managed to reach new lows, right now is very close to hit the 0.7000 psychological level, remains to see how will react when will touch this downside obstacle. Has decreased sharply and has resumed the bearish momentum even if the US dollar index has decreased today, the pair is very heavy on the Daily chart and seems unstoppable right now.
The NZD/USD wasn’t impressed by the USDX’s drop, the index has fallen as much as 101.75 level, much below the 102.05 static resistance, but this decrease could be only temporary after the last day’s impressive rally and could increase again in the coming period.
The Kiwi has decreased as the technical factors have taken the lead again, the pair could decrease further because is attracted by a major dynamic support. The New Zealand ANZ Commodity Prices rose by 2.0%, more versus the 0.1% drop in the previous reporting period, but has failed to save the Kiwi from downside.
On the other hand, the greenback has received support from the United States ISM Non-Manufacturing PMI, which has increased from 56.5 to 57.6 points, beating the 56.5 estimate, signalling that the expansion continues. The FEd Chair Yellen will speak later about the US economic outlook at the Executive Club of Chicago, remains to see how the pair will react after this speech.
The rate has plunged and has managed to touch new lows, could drop much deeper because is attracted by the third warning line (WL3) of the former ascending pitchfork, was expected to decrease after the failure to reach and retest the downtrend line and the 23.6% retracement level, has also failed to close again above the second warning line (WL2) of the ascending pitchfork.
The NZD/USD has decreased much below the 61.8% retracement level, I’ve said that the rate could approach the upper median line (UML) of the major descending pitchfork after the false breakout above the first warning line (WL1) of the major descending pitchfork, remains to see how will react when will hit the mentioned support levels.