The NZD/USD has dropped like a rock and has extended the sell-off, is very heavy and could hit new lows in the US trading session. Has managed to erase the last two week’s gains, signalling that the bears are very strong on the short term.

The Kiwi is losing significant ground versus the greenback as the USD bulls are optimistic again despite the USDX’s drop. The dollar will climb higher if the dollar index will have enough energy to make a minor consolidation above the 99.12 former support level.

The Kiwi, Aussie and Loonie have depreciated aggressively versus the greenback, signalling that the dollar was too oversold on the short term versus all these currencies. The US dollar was punished by the fundamental factors, so the previous drop wasn’t a natural one.

The Kiwi goes down on the mixed New Zealand data, the Visitor Arrivals increased by 1.5% in March, has come better versus the 1.9% drop in the previous reporting period, while the Credit Card Spending increased by 7.1%, more versus the 5.3% growth in the previous reading period.

The dollar could increase further because we don’t have any significant report from the US today, the Cude Oil Inventories will be released, but without any impact on this pair.

Has plunged today and now is trading below the 0.6896 static support, could approach the 100% Fibonacci level till the end of the day, actually, could be attracted by the confluence area formed at the intersection between the 100% with the fourth warning line (wl4).

You can notice that we have a major support right below the 0.6896 level, a valid breakout below this obstacle will signal a larger drop, is somehow expected to drop further after the failure to jump above the 0.7053 static resistance and above the 61.8% retracement level.

Could drop also because has failed to approach and reach the first warning line (WL1) of the major descending pitchfork, so technically is somehow expected to drop in the upcoming period, all we need is a USDX’s jump.