The NZD/USD is edging higher and is approaching the yesterday’s trading session, the pair continues to be bullish on the short term, so a breakout above the major static resistance from 0.7325 level is favored. The pair is expected to increase further if will have enough energy to close and stabilize above the yesterday’s high from 0.7343, the USD has dropped even if the US dollar index has increased a little today, the index has found temporary support and now is struggling to rebound, actually the rate has bounced back, but the greenback remains bloodless versus the Kiwi.
The New Zealand Dollar has increased despite the dreadful Trade Balance data, the New Zealand trade balance has plunged in the morning from 110M to -433M, has decreased more compared to the -320M. The Trade Balance has fallen again in the negative territory after 7-months, the trade deficit has reached the lowest level after December 2015, but the Kiwi wasn’t impressed by this monstrous decline because the currency pair was lifted in yesterday’s session by the Reserve Bank of New Zealand Governor Graeme Wheeler speech. However the US dollar has received a helping hand from the US economic figures in yesterday’s session, the New Home Sales have saved the greenback from downside, remains to see how will react today after the Existing Home Sales will be released by the National Association of Realtors,the economic indicator may drop from 5.57M to 5.52M, while the House Price Index could increase by 0.3%, more than the 0.2% estimate.
The US is to release also the Crude Oil Inventories, but I don’t think that will have a major impact on the NZD/USD pair.

The rate has managed to jump and close above the 0.7276 static resistance, has finally closed above the upper median line (uml) of the descending pitchfork, but was found strong resistance right below the major horizontal resistance from 0.7325 swing high. You can see that the rate is challenging the previous high (0.7325), but is facing tough resistance, the 50% Fibonacci line represents a very strong dynamic resistance, you can see that the rate was rejected by this line in the past, actually we have a strong confluence area here at the intersection of the 50% Fibonacci line with the 0.7325 static resistance, the rate will become strongly bullish if will have the strength to jump and stabilize above this confluence area, however, the rate could increae further even if the 50% Fibonacci line holds.

The price is retesting the 50% Fibonacci line and also the 0.7325 resistance, a rejection here will throw the rate down and could approach the 0.7276 static support, the rate could drop if will fail to reach again the yesterday’s high. You can see on the H4 chart that I’ve drawn an Rising Wedge pattern, the rate could approach again the support of this chart pattern in the coming hours, a breakdown from this formation will force the rate to move downside.

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