NZD/USD dropped again lately after retesting a broken uptrend line. It has slipped lower also because the DXY has registered a rebound in the short term. Technically, the pair has indicated that the upside is limited, so a potential decline is favored.
Still, you should keep in mind that only the US Dollar Index rally could help USD to drive the pair lower in the short term. The US inflation data, the CPI, and Core CPI could bring sharp movement tomorrow.
Better than expected US data reported during the week could bring USD higher versus its rivals in the short term.
NZD/USD Vulnerable To Slide Further!
NZD/USD has retested the uptrend line and now is back below the weekly pivot point (0.7206). Staying below it could signal a potential decline. This scenario could take shape if DXY (the US Dollar Index) rallies after the US inflation data which is due tomorrow.
NZD/USD could increase if the US data comes in worse than expected. The pair is trapped between the median line (ML) and the upper median line (UML). Right now it is hard to catch a good move as the price is somehow in a neutral zone.
NZD/USD Outlook!
A new lower low, closing below 0.7187 could validate a deeper drop towards the median line (ML).
