NZD/USD rallies after ignoring strong resistance levels. It's located at 0.7060 level and it seems strong enough to resume its growth. The Dollar Index drops after yesterday's minor rebound. The index is under massive selling pressure after the dovish Jackson Hole.
Today, the US is to release the Chicago PMI which is expected to drop from 73.4 to 68.0 points, while the CB Consumer Confidence index could drop from 129.1 to 122.9. Moreover, the House Price Index will be released as well. Some poor US economic figures could help NZD/SD to jump even higher.
NZD/USD Amazing Rally!
NZD/USD has managed to pass above the downtrend line beyond the ascending pitchfork's median line (ML). The current breakout indicates strong buyers. The immediate target is seen at the weekly R1 (0.7081) level.
In the short term, we cannot exclude a temporary decline, NZD/USD could come back to test and retest the median line (ML) before resuming its growth. 0.7088 former high is seen as a static resistance. It remains to see how the pair will react around the near-term resistance levels
Outlook!
Jumping above the downtrend line and through the median line (ML) indicates an upside reversal. Still, the reversal could be activated only after a valid breakout through the 0.7100 psychological level.
A minor consolidation above the median line (ML) and below the R1, 0.7088, and under 0.7100 could attract more buyers. 0.7000 and 0.6986 are seen as support levels. NZD/USD could resume its growth as long as it stays above the median line (ML).
