Overview:
NZD/USD is trading in lower range. The rate is undermined by decreased investor risk appetite; positive USD sentiment; Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses tempered by NZD-USD yield gap; positions adjustment before weekend. Daily chart is negative-biased as MACD and stochastics are bearish, although latter is at oversold; five- and 15-day moving averages are falling.
Preference:
If the price moves below to the pivot point of 0.8289, then look for downward movement towards 0.822 and below that 0.8189.
Support levels:
S1 - 0.8221-0.8211 band (Tuesday's seven-week low-Jan. 4 low)
S2 - 0.8189 (Dec. 31 low)
S3 - 0.8176
Alternative scenario:
Buy above 0.8289 with target 0.8316, breach of which would target 0.8345.
Resistance levels:
R1 - 0.832 (Thursday's high); breach would expose upside to
R2 - 0.8345 (Tuesday's high)
R3 - 0.8370
Technical comment:
The pair has rebounded from its resistance and is moving downwards.
