The NZD/USD pair rallied in the last hours and now is trading at 0.6161 at the time of writing. Surprisingly or not, the currency pair edged higher even if the US reported positive economic data. It seems that the USD was overbought in the short term, that's why the greenback lost significant ground versus its rivals.
The US Revised UoM Consumer Sentiment was reported at 63.5 points as expected, Chicago PMI jumped to 48.6 points above 43.6 estimates, Employment Cost Index rose by 1.2% beating the 1.1% growth forecasted, while Core PCE Price Index surged by 0.3%. In addition, Personal Income and Personal Spending came in better than expected as well.
NZD/USD Ignored The US Data!
From the technical point of view, the currency pair escaped from a Falling Wedge pattern signaling an upside reversal. It has retested the broken downtrend line and now it looks to trade higher.
In the short term, it is challenging 0.6155 and the weekly pivot point of 0.6160. It remains to see how it reacts around the immediate resistance levels as the USD could take the lead again after the US data.
NZD/USD Outlook!
A valid breakout above 0.6155 and through the weekly pivot point of 0.6160, closing, testing, and retesting these obstacles is seen as a bullish signal. The median line (ml) represents the first upside target.
