The NZD/USD has increased significantly today and has managed to erase the last two day’s losses and now is very close to take out a vary strong dynamic resistance (support has turned into resistance). The rate has increased significantly as the USD was punished by the USDX’s drop, the index has fallen aggressively in the afternoon, even if we had some very good data from the United States.

Remains to see what will happen in the coming days, the today’s rebound could be only temporary and the seller’s could take the lead again and could drive the price down on the short term.

The dollar was punished today by the United States Capacity Utilization Rate, which has decreased from 75.6% to 75.3% in January, even if the traders have expected the indicator to remain steady, while the Industrial Production has fallen by 0.3% in the previous month, despite that the economists had forecasted a 0.1% growth, the production has decreased sharply after the 0.6% growth in December 2016. Moreover the Mortgage Delinquencies have increased by 4.80%, more than the 4.50% in the previous reporting period, which is worse for the dollar, the NAHB Housing Market Index has dropped from 67 to 65 points, the traders have expected an increase to 68 points.

We could have some volatility tomorrow as the US and the New Zealand is to release high impact data, so you should be careful not to suffer a heavy loss.

The price has increased sharply today and now is pressuring the second warning line (wl2) of the former ascending pitchfork, could find temporary resistance at this level. Technically, remains under pressure on the short term after the failure to close above the first warning line (WL1) of the descending pitchfork, this rebound could represent only a retest of the wl2 before the rate will resume the short term bearish movement.

The next significant downside obstacles will be at he 0.7053 static support and lower at the upper median line (UML)  of the descending pitchfork, could reach also the third warning line (wl3) if the USDX will have enough energy to climb much higher.