The currency pair has dropped sharply today and resumes the bearish momentum. It seems too heavy to be stopped right now even if the USDX is bloodless. The USDX drags the pair down, but remains to see what will happen because has reached a dynamic support. Technically, it should take out the downside obstacle after the false breakout above a strong dynamic resistance.
Price is trading in the red and seems unstoppable, a further USDX’s increase will force the pair to hit fresh new lows in the upcoming period.
The USDX has managed to jump above the 92.49 static resistance, but we still need a confirmation that will really climb towards fresh new highs. USDX move sideways on the short term, this could be an accumulation and could bring us a larger rebound.
Price is pressuring the sliding parallel line (sl), which represents an important dynamic support. NZD/USD is trading in the red and is expected to ignore the mentioned support level and to approach and reach the 50% retracement level. We have an important downside target at the fifth warning line (wl5) as well.
Actually, it could be attracted by the confluence area formed between the 50% Fibonacci line with the fifth warning line (wl5).
Now is trapped within an ascending channel, but a breakdown below the sliding line (sl) will confirm a further drop in the upcoming period.
