The NZD/USD pair is trading in the green at 0.5824 at the time of writing. In the short term, it’s trapped within a range pattern, so only escaping from this formation could bring new trading opportunities.
It’s fighting hard to stay higher and resume its rebound as the AUD/USD pair increased a little as well. The Australian Retail Sales came in better than expected, Private Sector Credit came in line with expectations, while MI Inflation Gauge rose by 0.4%. The US is to release the Chicago PMI and the Loan Officer Survey but I don’t think that the economic data could have an impact.
Tomorrow, the RBA is expected to increase the Cash rate from 2.60% to 2.85%, while the FOMC should increase the Federal Funds rate by 75bps again on Wednesday. The fundamentals could drive the price during the week.
The US ISM Manufacturing PMI and JOLTS Job Openings and the New Zealand Unemployment Rate and Employment Change represent high-impact events tomorrow as well.
NZD/USD Strong Upside Pressure!
As you can see on the H1 chart, the pair continues to move sideways between 0.5787 and 0.5870 levels. Dropping below the ascending pitchfork’s median line (ML) after failing to make a new higher high signaled exhausted buyers.
Now, it could challenge the median line which stands as a dynamic resistance. Staying below it, NZD/USD could drop deeper.
A new higher high, jumping and closing above 0.5870 activates further growth and brings new longs in NZD/USD.
Registering only false breakouts through the median line (ML) and making a new lower low, a valid breakdown below the pivot point of 0.5780 announces a deeper drop and helps the sellers to go short.
The material has been provided by InstaForex Company – www.instaforex.com