- New Zealand Dollar is correcting higher against the US dollar, but facing an important resistance on the upside.
- 6500 represents a major hurdle for buyers on the way up where sellers may appear. <br>
- UK Consumer Price Index released by the US Bureau of Labor Statistics posted an increase of 0.2% in October 2015, just as the market expected.
- In terms of the yearly change, the outcome was above the forecast, as the Consumer Price Index gained 0.2%, more than the forecast of 0.1%.
The New Zealand Dollar moved lower towards 0.6450 recently before starting to correct higher. However, the current correction phase in the NZUDSD pair may not last long, as it could face a major resistance near 0.6500.
The 50% fib retracement level of the last drop from the 0.6544 high to 0.6452 low is also sitting near the pivot area of 0.6500, suggesting the importance of the hurdle.
The hourly RSI is also below the 50 level, which means the pair is still in the bearish zone.
The US saw a major release today, as the Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services was released by the US Bureau of Labor Statistics. The forecast was lined up for an increase of 0.2% in October 2015, compared with the preceding month. The result was as expected, but the most important point to note was the fact that the US CPI in terms of the yearly change increased 0.2%, more than the forecast of 0.1%.
The US Consumer Price Index (CPI) Ex Food & Energy was also around the expectation and posted an increase of 1.9% in October 2015 (YoY).
If the NZDUSD pair rallies towards 0.6500, then we might get an opportunity to sell.