Overview:
NZD/USD is trading in lower range. The rate is buoyed by Kiwi demand on soft AUD/NZD cross; NZD demand on buoyant NZD/JPY as weak yen sentiment supports the cross; NZD-USD yield gap. But NZD/USD gains tempered by soft commodity prices; positive USD sentiment. Daily chart is mixed as MACD is bullish, but stochastics is bearish near overbought.
Preference:
Sell below 0.846 with targets at 0.8395 and 0.836 in extension.
Support levels:
S1 - 0.8392 (Wednesday's low)
S2 - 0.8335 (Feb. 12 day)
S3 - 0.8307 (Feb. 11 low)
Alternative scenario:
Buy above 0.846. Above 0.846 look for further upside with 0.849 and 0.8535 as targets.
Resistance levels:
R1 - 0.849
R2 - 0.8534 (Friday's 17-month high)
R3 - 0.8571 (Aug. 31, 2011, high)
Technical comment:
The pair is posting a rebound but remains within a bearish channel, the RSI stands below its neutrality area.
