Overview:
NZD/USD is trading in lower range. The rate is underpinned by improved risk appetite, weaker USD sentiment; NZD-USD yield gap. But NZD/USD gains tempered by Kiwi sales on spot NZD/JPY as stronger yen sentiment weighs on the cross; Kiwi sales on buoyant AUD/NZD cross; 0.3% on-quarter drop in New Zealand 4Q producer input prices and 0.1% drop in producer output prices. Daily chart is mixed as bullish outside-day-range pattern was completed on Tuesday, MACD is in bullish mode; but stochastics is bearish.
Preference:
Sell below 0.8415 with targets at 0.836 and 0.833 in extension.
Support levels:
S1 - 0.836
S2 - 0.8331 (Feb. 12 day)
S3 - 0.8307 (Feb. 11 low)
Alternative scenario:
Buy above 0.8415. Above 0.8415 look for further upside with 0.845 and 0.849 as targets.
Resistance levels:
R1 - 0.845
R2 - 0.8489 (Tuesday's high)
R3 - 0.8534 (Friday's 17-month high)
Technical comment:
The break below 0.8415 is a negative signal that a path to 0.836 was opened.
