The NZD/USD has increased aggressively in this week, has opened with
a gap up in the Asian session and now is very close to reach a very strong
dynamic resistance, which could stop the upward momentum. The pair has continued
to increase even if the US dollar index has increased a little in the last
hours, the USD remains under selling pressure even if the currency has posted
little gains today, the USDX remains deep in the seller’s territory  and could drop much deeper in the coming days
if the Federal Reserve will delay to hike the interest rate.

The Kiwi has increased aggressively as the Reserve Bank of New
Zealand has maintained the Official Cash Rate on hold at 2.25%, matching
expectations. The RBA is expected to add more stimulus measures in the coming
months as the inflation remains low, we could see another rate cut in the coming
period, the previous rate decrease was in March when the RAB has cut 0.25% from
2.50%. Most likely the rate will fall again if the RBA will take action again.

The United States is to release the Jobless Claims data later today,
the initial claims could increase again from 267K to 269K in the last week, the
jobless data could save the dollar from downside only if will decrease sharply.
Moreover the US Wholesales Inventories could increase by 0.1% in April, the
same as in March, any disappointment will punish the greenback, we’ll have to
wait to see what will happen in the coming hours, but tomorrow the USD could
receive another blow from the Prelim UoM Consumer Sentiment which is expected
to drop from 94.7 to 94.1 points.

The price has opened with a gap up, but we could decline  on the short term to close this trading
pattern, you can notice that is trading right below the median line (ml) of the
ascending pitchfork, the rate is expected to find temporary resistance at this
dynamic resistance, the perspective remains bullish as long as the price is
trading inside the ascending pitchfork’s body, the movement could become much
stronger if will jump and consolidate above the median line. The NZD/USD could
drop on the short term if the USDX will continue the short rebound, the index
has increase aggressively and is trying to jump above the 94.00 level, an
increase toward the 95.00 level will push the USD much higher versus all its
counterparts.

The pair could decrease to test the broken horizontal resistance
from the 0.7053 level, the rate is expected to slip lower after the impressive
bullish run.

The price has decreased in the last two hours after has reached
today’s high from 0.7147 level, a drop toward today’s low from 0.7070 level is
favored, the pair could recapture energy to start another bullish momentum,
having target at the median line (ml) of the ascending pitchfork. Any drop
below today’s low will attract more sellers, which will try o close the gap.

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