Overview:
NZD/USD--to consolidate in lower range after hitting two-week low of 0.8312 Thursday. Supported by spillover from renewed Aussie strength after upbeat RBA's Stevens' testimony in Australian Parliament this morning; NZD-USD yield gap. But NZD/USD gains tempered by heightened risk aversion; positive USD sentiment; weak commodity prices; Kiwi sales on buoyant AUD/NZD cross; continued reverberations from RBNZ Gov. Wheeler's warning that the central bank might intervene to cap Kiwi's strength; positions adjustment ahead of weekend. Data focus: 0200 GMT New Zealand January credit card statistics. Daily chart still negative-biased as MACS & stochastics in bearish mode.
Preference:
Short positions below 0.839 with targets at 0.8315 and 0.828 in extension.
Support Levels:
S1 - 0.8312-0.8307 (Thursday's low-Feb. 11 low)
S2 - 0.8294 (Feb. 7 low)
S3 - 0.8278 (Jan. 28 low)
Alternative scenario:
Above 0.839 look for further upside with 0.8415 and 0.845 as targets.
Resistance Levels:
R1 - 0.8415
R2 - 0.845
R3 - 0.8489 (Tuesday's high)
Technical Comment:
The pair is rebounding and is challenging its new resistance (former support), the RSI is approaching its overbought area and lacks upward momentum.
