Overview:
NZD/USD is consolidating with bearish bias after hitting one-week low of 0.8294 on Thursday. The rate is undermined 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; positions adjustment before weekend. Kiwi is vulnerable to China trade and CPI data. Daily chart is negative-biased as MACD and stochastic are in bearish mode; bearish parabolic stop-and-reverse signal was hit at 0.8306 on Thursday.
Preference:
Sell below 0.8375 with targets at 0.832 and 0.829 in extension.
Support levels:
S1 - 0.832
S2 - 0.8294-0.8290 (Thursday's low-Jan. 30 low)
S3 - 0.8278 (Jan. 28 low)
Alternative scenario:
Buy above 0.8375. Above 0.8375 look for further upside with 0.84 and 0.8435 as targets.
Resistance levels:
R1 - 0.8400 (Thursday's high)
R2 - 0.8435
R3 - 0.8460-0.8465 (Wednesday's high-Tuesday's high).
Technical comment:
The pair is posting a rebound but stands below its resistance, the RSI lacks upward momentum.
