The NZD/USD pair retreated a little and now is located at 0.5967 at the time of writing. In the short term, the bias is bullish, further growth is possible despite temporary retreats. After its impressive growth, the rate could come back to test and retest the immediate support levels before jumping higher.
As you already know, the USD depreciated versus the other major currencies as the US Flash Manufacturing PMI and Flash Services PMI came in worse than expected. Today, the US is to release the Unemployment Claims, Durable Goods Orders, and Core Durable Good Orders data. Better-than-expected economic figures could save the greenback from the downside. Also, don't forget that the Jackson Hole Symposium could bring high action as well.
NZD/USD Retesting The Buyers!
From the technical point of view, the NZD/USD pair came back to retest the 0.5963 broken resistance. As long as it stays above this level, the rate could extend its growth.
As you can see on the H1 chart, the price developed a minor flag pattern which could represent an upside continuation formation.
NZD/USD Outlook!
Jumping and closing above the flag's resistance and above the R1 of 0.5980 is seen as a new buying opportunity as the rate could try to approach and reach at least the median line (ml). A larger growth could be confirmed by a valid breakout above the median line (ml).
