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NZD/USD bulls sticking to their guns on mid 0.78 handle

FXStreet (Guatemala) - NZD/USD is trading at 0.7861, up 0.00% on the day, having posted a daily high at 0.7879 and low at 0.7806.

NZD/USD is making a firm base and the bulls are resisting pressures through the mid range of the 0.78 handle. The bird took a hard hit through the levels on the 0.79 handle, dumping past 0.7920 ahead of 0.7880 support and has since been drifting lower until recent trading activity. We have had higher than expected CPI in from the US by 0.1% year on year, but no great movement there and then better existing homes sales and a huge Philly Fed number in. Markets, are however, making their minds up for the time being, that the Fed will not be doing anything early 2015.

The FOMC minutes supported the pair to some extent while China’s latest flash PMI that came in at a six month low but didn’t have much of an impact but is worth noting none the less in the sense of the global economy slowing down. Commodity prices are continuing to weigh on the New Zealand dollar and this was evident in the recent global milk auction with prices there falling yet again.

NZD/USD noteworthy short term levels

With spot trading at 0.7862, we can see next resistance ahead at 0.7864 (Hourly 200 SMA), 0.7876 (Daily Classic PP), 0.7899 (Hourly 100 SMA) and 0.7915 (Daily Classic R1). Support below can be found at 0.7856 (Weekly Classic PP), 0.7855 (Daily 20 SMA) and 0.7851 (Hourly 20 EMA).

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