FX.co ★ NZD/USD shows oversold signs

The NZD/USD pair is located at 0.5954 at the time of writing and it tries to extend its rebound. The greenback lost some ground versus its rivals in the short term as the Dollar Index retreated after yesterday's rally. Today, the fundamentals should be decisive, that's why we have to be careful, anything could happen.

Surprisingly or not, the currency pair stays higher even if the New Zealand Retail Sales reported a 1.0% drop versus the 0.4% drop expected, while Core Retail Sales dropped by 1.8% more compared to the 0.2% estimates. The US data could really shake the markets in the US session. The Flash Manufacturing PMI is expected to remain in the contraction territory, while the Flash Services PMI may announce a slowdown in expansion. In addition, the New Home Sales could increase from 697K to 705K. Better-than-expected US data should boost the greenback.

NZD/USD Strong Buyers!

As you can see on the H1 chart, the rate failed to stay below the descending pitchfork's lower median line (LML) signaling that the sell-off ended.

In the short term, it's trapped between 0.5963 and 0.5903 levels. Escaping from this pattern could bring us new trading opportunities.

NZD/USD Outlook!

Staying near the 0.5963 static resistance may announce an imminent breakout. A new higher high, jumping and closing above the R1 (0.5980) is seen as a buying opportunity with a potential target at the R2 (0.6030).