NZD/USD plunged as the Dollar Index has managed to increase after finding support on the 150% Fibonacci line. The pair is pressuring critical dynamic support. As a result, a valid breakdown may signal a larger drop. Technically, a valid breakout from the current range could bring us a clear direction. The NZD/USD price drops right now as the Dollar Index has managed to rise. The pair stands at 0.7010, far below 0.7061 yesterday’s high. It approaches a critical dynamic resistance. A valid breakdown may signal further drop and could invalidate a potential bullish reversal. –Are you interested to learn more about forex bonuses? Check our detailed guide- The NZD/USD pair continues to move sideways on the 4-hour chart, so only a valid breakout from this range could bring us a clear direction. The pair dropped after the US reported positive data earlier. The bias is bearish in the short term. Only DXY’s drop could help the NZD/USD pair to start rising again. The NZ Manufacturing Index and the Visitor Arrivals indicators will be released tomorrow, but I don’t think that will impact the NZD/USD price a lot. The US Prelim UoM Consumer Sentiment is expected to remain steady at 81.2 points. Better than expected data could help Greenback to increase versus its rivals. DXY technical analysis DXY 4-hour price chart DXY jumped above the 93.00 psychological level again after the US PPI, and Core PPI came in better than expected. Also, the Unemployment Claims dropped to 375K as expected in the previous month. The index has found support on the 150% Fibonacci line, and now it tries to come back towards the weekly R1 (93.14). However, DXY is traded below a strong resistance area, so a bearish pattern could signal a potentially significant drop. Get FREE Forex Signals Now! NZD/USD price technical analysis: Bullish invalidation in preparation NZD/USD 4-hour price chart The NZD/USD pair dropped and pressuring the ascending pitchfork’s lower median line (LML). However, the bias is still bullish as long as the price stays within the ascending pitchfork’s body. Unfortunately, it has failed to stabilize above the 38.2% retracement level and beyond the 50% Fibonacci line. –Are you interested to learn more about day trading brokers? Check our detailed guide- A valid breakdown through the lower median line (LML) could signal a deeper drop ahead. Its failure to reach the 50% (0.7098) retracement level signaled that the NZD/USD pair could come back towards the range’s support. Technically, a false breakdown with a bullish pin bar through the lower median line (LML) or a major bullish engulfing may signal a new upside momentum. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next Cardano Price Prediction: Strong US PPI Dragging ADA/USD to $1.7030 Ali B. 1 year NZD/USD plunged as the Dollar Index has managed to increase after finding support on the 150% Fibonacci line. The pair is pressuring critical dynamic support. As a result, a valid breakdown may signal a larger drop. Technically, a valid breakout from the current range could bring us a clear direction. The NZD/USD price drops right now as the Dollar Index has managed to rise. The pair stands at 0.7010, far below 0.7061 yesterday’s high. It approaches a critical dynamic resistance. A valid breakdown may signal further drop and could invalidate a potential bullish reversal. –Are you interested to learn more… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.