Forex Trading: NZDUSD tested 38.2% retracement this morning

The NZDUSD ran into some stops at the 0.7775 area this morning and tested the 38.2% retracement level of the recent move lower.  The pair was able get through the level and test the 0.7800 level, but failed back to the 0.7780 level.  

Now the pair sits between the support at 0.7775 and 0.7800 as it prepares for NZ Finance Minister Michael Cullen's annual budget speech at 10:00 PM tonight.   The expectation is for a tax cut between NZ$1.5/2.0bn to aid the slowing economy.  A move higher on the back of the  tax relief would target the 0.7875 level where both the 50% retracement level and the 100 day moving average are looming. 

On the downside, the good support comes in at the 200 day moving average is at 0.7668.