NZD/USD rallied today as the Dollar Index plunged. It has increased to as high as 0.6842 today but it has failed to take out the 0.6833 static resistance. In the short term, it's trapped within a range pattern. Technically, the rate tries to accumulate more bullish energy and attract more buyers before jumping towards new highs.
The USD received a hit from the Goods Trade Balance and from the Pending Home Sales reported worse than expected data. Tomorrow, the Unemployment Claims is expected at 205K in the previous week, while the Chicago PMI could grow from 61.8 to 61.9 points.
NZD/USD another false breakout
NZD/USD has found support on the 0.6788 level failing to reach the 0.6787 weekly pivot point. Then, it has registered a false breakout above the 0.6833 static resistance, but the upside pressure remained high.
If the pair stays near the level of 0.6833, it may announce an imminent upside breakout and an upside continuation. A jump and closure above today's high, a bullish closure above 0.6842 could confirm further growth.
NZD/USD prediction
Making a valid breakout above 0.6833 and registering a new higher high could validate further growth. This scenario could bring new buying opportunities from above today's high of 0.6842. After its failure to reach the weekly pivot point (0.6787), NZD/USD could climb towards the R1 (0.6871). The next major upside target and obstacle is represented by the upper median line (UML).
