NZD/USD drops again after a temporary rebound and it could reach fresh new lows soon if the US data comes in line with expectations or better. Technically, the pair has escaped from a major up channel, so it is somehow expected to drop further in the short term.
A USDX's rally after the US data release will boost the USD which will appreciate versus all its rivals and not only against the Kiwi.
As you can see, NZD/USD has found temporary support on the median line (ML) of the black descending pitchfork, it has come back to retest the broken uptrend line, up channel's support, and the Pivot Point (0.6594) level.
Now, it's almost to reach the median line (ML) again, a valid breakdown will suggest a further drop towards the S1 (0.6471) level and towards the 0.6393 level.
- NZD/USD Trading Tips
Sell NZD/USD if the price closes below the median line (ML) and below the 0.6524 former low. The S1 (0.6471) could be used as the first downside target, while the next downside targets are at 0.6393 level, at the lower median line (LML), and lower at the S2 (0.6318) level.
