Overview:
NZD/USD is trading in higher range. NZ markets shut today for holiday. NZD/USD is underpinned by positive investor risk sentiment; firmer commodity prices; NZD-USD yield gap; Kiwi demand on soft AUD/NZD cross; and Kiwi demand on buoyant NZD/JPY as negative JPY sentiment supports the cross. Daily chart is positive-biased as MACD and stochastic are in bullish mode; five-day moving average is above 15-day MA and rising.
Preference:
Sell below 0.847 with targets at 0.839 and 0.8335 in extension.
Support levels:
0.8384 (Friday's low)
0.8341 (Thursday's low)
0.8290 (Jan. 30 low)
Alternative scenario:
Buy above 0.847. Above 0.847 look for further upside with 0.851 and 0.853 as targets.
Resistance levels:
R1 - 0.851
R2 - 0.853
R3 - 0.8571 (Aug. 31, 2011 high)
Technical comment:
The pair stands below its resistance and remains under pressure, the RSI stands below its neutral area and is badly directed.
