FX.co ★ NZD/USD: bearish pattern to be confirmed

The NZD/USD pair rebounded in the short term as the Dollar Index retreated. Now, the DXY started to grow again after positive US data, so the USD could take the lead versus its rivals again. It's located at 0.5822 at the time of writing and it seems overbought again.

Fundamentally, the greenback received a helping hand from the US Revised UoM Consumer Sentiment, Core PCE Price Index, and from Personal Spending data.

NZD/USD Rebound Seems Over!

As you can see on the H1 chart, the price action developed a flag pattern which represents a bearish formation.

It was almost to reach the upper median line (UML) of the major descending pitchfork. Its failure to hit this obstacle announced exhausted buyers. Also, as long as it stays below it, the NZD/USD pair could develop a new sell-off.

NZD/USD Forecast!

The price challenges the minor uptrend line. The immediate low of 0.5815 stands as a key downside obstacle. Dropping and closing below it activates more declines and is seen as a selling signal.