The NZD/USD increased today, but has failed to reach the 0.7052 yesterday’s high and now has slipped as the USD was pushed higher by the USDX rebound. The dollar index has dropped aggressively today and has erased the yesterday’s minor gains, we’ll see what will happen in the upcoming days because is still trading right  above a dynamic support line, could bounce back if will continue to stay somewhere above the 99.60 level, a throwback will send the dollar higher again, but is premature to say because is still under pressure on the short term.

The Kiwi has edged higher in the morning as the New Zealand data have come in better, the Consumer Price Index has increased by 1.0% in the first quarter, exceeding the 0.8% estimate and the 0.4% growth in the previous reading period. The USD has increased a little in the last hours, even if the United States economic data have come in worse than expected, the Unemployment Claims and the Philly Fed Manufacturing Index have disappointed.

The  USDX is moving somehow sideways on the Daily chart, I’ve said in the previous months that we may have a range before the index will make a significant move, could continue to move in range in the upcoming weeks till will have enough directional energy to start a broader movement.

The NZD/USD has increased, but has failed to reach the 61.8% retracement again, signalling a little exhaustion, remains bullish on the short term, but a retreat could appear because he needs more directional energy to be able to break above the warning line (WL1) of the major descending pitchfork.

Is expected to increase further after the failure to reach and retest the 0.6896 static support, but I’ve said in the previous articles that he could come down to test and retest the fourth warning line (wl4) before will climb much higher. Only a  breakdown below the 0.6896 static support will open the door for more declines, this scenario will happen only if the USDX will jump much above the 101.00 psychological level.