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NZD/USD held up on decendng support

FXStreet (Guatemala) - NZD/USD is trading at 0.7929, down -1.83% on the day, having posted a daily high at 0.8079 and low at 0.7915.

NZD/USD is being held up along the descending support that commenced 0.7960/70. Meanwhile, Raiko Shareef, Currency Strategist at BNZ noted that the RBNZ took the highly unusual step of releasing an unscheduled statement, with the opening lines reading: “The Reserve Bank considers the level of the exchange rate is unjustified and unsustainable, and that it is susceptible to a significant downward adjustment.” He explained that was a very strong signal indeed. “The statement appeared completely out of the blue, and intentionally so.The speech basically informed us that the RBNZ is likely on a hold through to March 2015. “If anything, we consider this as good as Governor Wheeler signalling that outright intervention is on the cards, short of speaking those words himself”, the analysts explained. “Importantly, Governor Wheeler highlights the corollary to these assessments – that they feed into the intervention framework. As a reminder, these are that:

1) The level of the exchange rate must be exceptional.
2) The level of the exchange rate must be unjustified.
3) Intervention must be consistent with monetary policy.
4) Market conditions must make intervention opportune (likely to succeed)”.

NZD/USD near term levels

With spot trading at 0.7929, we can see next resistance ahead at 0.7988 (Hourly 20 EMA), 0.7992 (Weekly Classic S2), 0.7998 (Daily Classic S3), 0.8021 (Daily Classic S2) and 0.8044 (Yesterday's Low). Support below can be found at 0.7915 (Daily Low) and 0.7905 (Weekly Classic S3).

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