Overview:
NZD/USD is to trade in higher range, supported by weaker USD sentiment after G-7 statement, lower-than-expected U.S. January NFIB index of small business optimism (rose to 88.9 from 88 in December, well below 89.5 forecast) and optimism over China's growth prospects, and NZD-USD yield gap. Daily chart is mixed as MACD is in bearish mode, but stochastics are bullish.
Preference:
Buy above 0.838 with targets at 0.8435 and 0.8465 in extension.
Resistance Levels:
R1 - 0.8437 (Tuesday's high)
R2 - 0.8460-0.8465 (Feb. 6 high-Feb. 5 high)
R3 - 0.8481 (Feb. 4 high)
Alternative scenario:
Sell below 0.838. Below 0.838 look for further downside with 0.833 and 0.8305 as targets.
Support Levels:
S1 - 0.8331 (Tuesday's day)
S2 - 0.8307 (Monday's low)
S3 - 0.8278 (Jan. 28 low) and 0.8211 (Jan. 4 low).
Technical Comment:
The pair remains on the upside and is approaching to its next resistance, a pull back should not be ruled out ahead of further advance.
