FX.co ★ NZD/USD: bearish pattern

The NZD/USD pair registered a strong upwards movement, printing a new higher high of 0.6082. After such an impressive growth, we cannot exclude a retreat. Still, a sell-off is far from being confirmed. The Dollar Index's strong drop forced the USD to lose ground versus its rivals.

Fundamentally, the New Zealand Credit Card Spending reported a 2.9% drop, while GDT Price Index registered a 0.0% growth. On the other hand, Existing Home Sales reported poor data. Later, the FOMC Meeting Minutes should bring sharp movements.

Tomorrow, the Revised UoM Consumer Sentiment and Unemployment Claims should bring some action.

NZD/USD Trapped Between 0.6050 - 0.6082!

Technically, the price action developed a flag pattern (up channel) which could be seen as a bearish formation.

Still, as long as it stays above the uptrend line and above the immediate low of 0.6050, the bias remains bullish.

NZD/USD Forecast!

Dropping and closing below 0.6050 and making a new lower low activates a larger drop. This could be seen as a short opportunity.

A new higher high, a bullish closure above 0.6082 activates further growth.