The NZD/USD short term bearish movement was stopped by a static
support level and the sentiment could change if the US dollar index will fail
to resume the upward movement, the USD bulls are exhausted and could lose
ground in the coming days if the US economic data will fail to boost the US
currency. The greenback has decreased in the last days, even if the economic
figures have come better, maybe the USD was too overbought to be able to stay
higher. The dollar remains somehow sluggish on the short term versus all its
counterparts, the greenback wasn’t impressed by yesterday’s economic figures
even if the data has beat the expectations.
The dollar was saved from the downside by the US Pending Home Sales,
the economic indicator has increased by 5.1%, has exceeded the 0.6% estimate,
the dollar is driven by technical factors right now, the USD has ignored the
lower Unemployment Claims, the initial claims have dropped to 268K in the last
The US is to release the Prelim GDP indicator, which is expected to
increase by 0.8% in the first quarter, much more compared to the 0.5% in Q4,
while the Prelim GDP Price Index could increase by 0.7%. The Revised UoM
Consumer Sentiment could decrease a little from 95.8 to 95.7 points, but the
main event could be the Janet Yellen’s speech, which could bring some action in
The price has decreased in the last weeks because the buyers have
failed to maintain the pair above the 0.6896 horizontal resistance, the rate
has found strong resistance at the median line of the ascending pitchfork and
then was started a correction phase. The NZD/USD has managed to escape from he
ascending pitchfork, has retested the short sliding line from below the lower
median line of the ascending pitchfork and now looks determined to resume the
downward movement, the pair is trading much below the 0.6780 level, the price has
retested this level as well, but has failed to close above this obstacle.
NZD/USD maintains a bearish perspective on the short term, the price could drop
to reach the median line (ML) of the major descending pitchfork, the outlook
remains bearish as long as the price is trading under the upper median line (UML)
of the descending pitchfork.
The NZD/USD has failed to start a broader rebound on the medium term,
the price continues to move inside the extended range movement, could approach
the 0.6345 static support or even the 0.6243 level if the USDX will have enough
energy to resume the upward movement.
I’ve drawn a descending pitchfork on the downward movement to show
you better the bearish movement and its potential, the price continues to move
down between the upper median line (uml) and the median line (ml), the pair has
retested the upper median line, but has failed to stabilize above this minor obstacle
and now could approach again the median line (ml).
The pair could drop inside this mini pitchfork till will reach the
median line (ML) of the major descending pitchfork.
About The Post
About The Forex Analyst
Has graduated a Master in Business Administration, Trader/ Market Analyst on the financial markets (forex, commodities, index, stocks, futures, cryptocurrencies) for more than 7 years. Founder and Market Analyst at http://ovtbusiness.com/