NZD/USD is trading in the green at 0.7285 level at the moment of writing. The price rallied as the US Dollar Index plunged. Technically, the pair has registered a temporary decline after its last aggressive bullish momentum.
The bias is bullish, so the pair could resume its growth. Some poor US data reported later today could boost the pair. The ISM Manufacturing PMI is seen as a high-impact event, so you should be careful around this publication as the volatility will be high.
NZD/USD Upside Momentum!
The bias is still bullish as long as the pair stays above the uptrend line. Its failure to retest this dynamic support signaled strong buyers. Technically, the bias is bullish but we have to careful because NZD/USD is traded below the upper median line (UML) which represents a major dynamic resistance.
NZD/USD could slip lower again in the short term if the US data will come in better than expected today and during the week. Actually, the price action has developed a potential Rising Wedge pattern.
The reversal pattern could be activated by a valid breakdown through the uptrend line. Still, the rate could only retest the weekly pivot point (0.7239).
Forecast!
A minor decline could bring a new buying opportunity. Also, jumping above 0.73 and registering a valid breakout above the ascending pitchfork's upper median line (UML) could really indicate a broader growth. The 0.74 psychological level is seen as a potential upside target.
