The NZD/USD pair rallied in the last hours and now is located at 0.5928, far above today's low of 0.5920. Still, the downside pressure remains high, so a larger rebound needs strong confirmation. Technically, the price action signaled exhausted sellers even if the US reported positive data today.
Fundamentally, the Australian CPI reported a 5.2% growth as expected. Earlier today, the US Durable Goods Order reported a 0.2% growth beating the 0.5% drop expected, while Core Durable Goods Orders reported a 0.4% growth beating the 0.2% growth estimated. Tomorrow, New Zealand is to release the ANZ Business Confidence, while the US publishes the Final GDP, Unemployment Claims, Final GDP Price Index, and Pending Home Sales. Also, Fed Chair Powell Speaks is seen as a high-impact event.
NZD/USD Bullish Momentum!
As you can see on the H1 chart, the rate found support on the uptrend line. The price action developed a minor flag pattern. It's trapped between 0.5944 and 0.5922 levels.
Escaping from this pattern could bring us new opportunities. Staying near the uptrend line may announce an imminent breakdown.
NZD/USD Forecast!
Dropping and closing below the uptrend line and under 0.5922 activates more declines. This is seen as a short opportunity.
