The NZD/USD is going down aggressively, resuming the minor corrective phase, should drop much deeper if the USDX will have enough energy to stay above the 100.56 broken static resistance. Has reached new lows today as the Kiwi has failed to stop the bearish momentum, price looks unstoppable on the short term after the retest of some important resistance levels.
The pair has plunged much below the 0.7000 psychological level and should reach fresh new lows in the upcoming days, could drop even if the USDX will slip lower, the index is facing a tough static resistance (100.56), has jumped above this level, but unfortunately the bulls seem exhausted on the short term. The Kiwi has decreased today also because the New Zealand data have failed to impress, the NZIER Business Confidence dropped from 28 to 17 points in Q1, reaching the lowest level of the last four quarters, moreover the GDT Price Index increased by 1.6%, less versus the 1.7% growth in the previous reading period. The USD stay higher as the United States Trade Balance has increased from -48.2B to -43.6B , beating the -46.0B estimate, the Factory Orders have increased by 1.0%, matching expectations, while the IBD/TIPP Economic Optimism dropped from 55.3 to 51.7 points, much below the 53.2 estimate.
Is going down after the retest of the 150% Fibonacci line and the red downtrend line, has slipped below the 0.6975 Friday’s low and looks determined to hit new lows in the coming hours. Technically is expected to drop at least till will reach the 0.6896 static support, where he could find strong support again.
The current decrease is natural after the false breakout above the 61.8% retracement level and above the 0.7053 static resistance, has also failed to stabilize above the third warning line (WL3), so the rate could try to approach also the fourth warning line (WL4) of the ascending pitchfork in the upcoming weeks.
Could be attracted by the confluence formed by the fourth warning line (WL4) with the upper median line (UML) of the descending pitchfork.