The NZD/USD pair is located at 0.6031 at the time of writing. Today, it has climbed as much as 0.6051 where it has found resistance. A temporary retreat was natural after its strong growth. Still, a larger drop needs confirmation.
Yesterday, the currency pair edged higher as the US CPI and Core CPI reported lower inflation in October. Today, the greenback tried to rebound and recover as the US Retail Sales reported only a 0.1% drop versus the 0.3% drop expected, Core Retail Sales reported a 0.1% growth beating the 0.1% drop expected, while Empire State Manufacturing Index came in better than expected as well. Still, the USD remains sluggish as the US PPI and Core PPI reported poor data.
NZD/USD New Bullish Momentum!From the technical point of view, after such an impressive rally, a retreat was somehow expected. The rate failed to hit the historical level of 0.60521 which represents a key upside obstacle.
Personally, I've drawn a descending pitchfork hoping that I'll catch a downside movement. So, as long as it stays below the upper median line (UML), the NZD/USD pair could develop a larger leg down.
NZD/USD Outlook!As long as it stays above the 0.6000 psychological level, the rate could resume its growth. A new higher high, closing above 0.6052 activates further growth.
A new lower low, a bearish closure below 0.6000 activates a deeper drop and is seen as a selling signal. The median line (ML) is seen as a potential target if the rate continues to drop.