Overview:
NZD/USD is consolidating with bullish bias after hitting one-week high of 0.8332 on Tuesday. The rate is supported by positive risk appetite; firmer commodity prices; NZD-USD yield gap. But NZD/USD gains tempered by positive USD sentiment and higher U.S. Treasury yields after surprise rise in U.S. ISM non-manufacturing composite index to 56 in February from 55.2 in January (vs. forecast for drop to 55.0). Daily chart is mixed as MACD is bearish, but stochastics is rising oversold.
Recommendation:
Buy above pivot point of 0.83 with first target at 0.8353 and second target at 0.8417.
Resistance levels:
0.8353 (Feb. 26 high)
0.8417 (Feb. 25 high)
0.8489 (Feb. 19 high).
Alternative scenario:
Sell below 0.83 and look for downside movement with first target at 0.825 and second target at 0.823.
Support levels:
S1 - 0.8253 (Tuesday's low)
S2 - 0.823
S3 - 0.8190 (Monday's two-month low)
