Overview:
NZD/USD is trading in lower range. NZD sentiment was hurt after New Zealand 4Q seasonally adjusted employment fell 1.0% on quarter, defying expectations for 0.4% rise, although unemployment rate of 6.9% was lower than the 7.1% forecast. NZD/USD is also weighed by receding investor risk appetite; weaker commodity prices; Kiwi sales on rebounding AUD/NZD cross. But NZD/USD losses tempered by NZD-USD yield gap. Daily chart is negative-biased as stochastic turned bearish; MACD is staging bearish crossover against its exponential moving average.
Preference:
Sell below 0.84 with targets at 0.8335 and 0.829 in extension.
Support levels:
S1 - 0.8341 (Jan. 31 low)
S2 - 0.8290 (Jan. 30 low)
S3 - 0.8278 (Jan. 28 low)
Alternative scenario:
Buy above 0.84. Above 0.84 look for further upside with 0.8435 and 0.8465 as targets.
Resistance levels:
R1 - 0.8435
R2 - 0.8460-0.8465 (Wednesday's high-Tuesday's high)
R3 - 0.8481 (Monday's high)
Technical comment:
The pair is posting a rebound but stands below its resistance, the RSI is rebounding but stands below its neutral area.
