FX.co ★ NZD/USD: Further Advance.

Overview:
NZD/USD is supposed to trade in higher range supported by the Kiwi demand on soft GBP/NZD and EUR/NZD crosses as well as NZD-USD yield gap. But NZD/USD gains are tempered by decreased investor risk tolerance. Daily chart is positive-biased as stochastics are in bullish mode, MACD is turning bullish.
The high of the 0.84 range is in line to be tested, as a break above Wednesday's 0.849 high is anticipated. A push above 0.8505 is expected in the coming sessions, opening 0.860 and the October 2011 high at 0.87. Corrective downside risk is limited to 0.838, which is protected by 0.8395.
Preference:
Buy above 0.842 with targets at 0.848 and 0.8505 in extension.
Resistance Levels:
R1 - 0.8481 (Feb. 4 high)
R2 - 0.8505
R3 - 0.8571 (Aug. 31, 2011, high)
Alternative scenario:
Sell below 0.842. Below 0.842 look for further downside with 0.8395 and 0.838 as targets.
Support Levels:
S1 - 0.8395 (Wednesday's low)
S2 - 0.838
S3 - 0.8331 (Tuesday's day)
Technical Comment:
The pair stands above its new support (former resistance) and should post further advance as the RSI is well directed and stands below its overbought area.