The NDZ/USD has increased aggressively in the last hours
after the release of the United States economic data, the greenback was punished
by poor NFP. The US dollar index has plunged today and has sent the USD much
lower versus all its counterparts, the index is trading right above the 94.00 level,
has increased a little as the rate had reached the 93.99 level today, a further
drop will drag the greenback much lower. The USDX has failed to stay higher,
the sentiment could change on the short term if the rate will stabilize again
below the 94.37 level. The Kiwi has taken full control and now is dragging the
price higher, I’ve said in another article that the pair is losing bearish momentum
and could increase again on the short term.
The USD has decreased because the Non-Farm Employment Change has
come much worse compared to the specialists predictions, the United States have
added only 38K jobs in May, less compared to the 159K estimate. The NFP has
reached the lowest level after September 2011 and has sent the greenback into
agony again. United States Unemployment Rate has decreased from 5.0% to 4.7%
points, the rate continues to decrease, but unfortunately the USD has harmed by
the poor NFP report, otherwise the greenback should have jumped much higher. The
Average Hourly Earnings have increased by 0.2%, matching expectations, while
the Trade Balance has decreased further and have reached the -37.4B, but has
come better compared to the -41.2B estimate.
Unfortunately for the USD, the poor data have continued to come from
the United States economy, the ISM Non-Manufacturing PMI has decreased unexpectedly
lower, from 55.7 to 52.9 points, signalling that the expansion is slowing down,
have dropped much below the 55.4 estimate.
The price has managed to jump again inside the formed ascending
pitchfork’s body, is trading above the lower median line (lml) and is challenging
the upper median line of the descending pitchfork, we’ll have a good
opportunity to go long on this pair if the price will stabilize above the
confluence area formed at the intersection of the lower median line (lml) with
the upper median line (UML) of the descending pitchfork. The pair is also
trading above the 0.6896 horizontal resistance, the perspective is bullish if
the price will stay inside the ascending pitchfork, the next upside target is at
the median line (ml) of this pitchfork.
Another drop below the mentioned confluence area will attract more sellers
again and if will decrease below the sliding parallel line (ascending dotted
line), then most likely will come another broader decrease.
I’ve drawn a short ascending pitchfork (dark blue) and you can see
that the bullish rally has stopped right below the upper median line (uml) of
the minor pitchfork, the price could drop on the short term if the dynamic
resistance will hold at the next breakout attempts. NZD/USD will become strongly
bullish if will jump above the mentioned dynamic resistance, but my feeling is
that the price will decrease a little in the fresh start of next week.
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/