Overview:
NZD/USD is trading in lower range. The rate is undermined by positive USD sentiment and soft commodity prices. But NZD/USD losses tempered by positive risk appetite; NZD-USD yield gap. Daily chart is mixed as MACD is bearish, but stochastics is in bullish mode. NZD/USD is underpinned by positive USD sentiment and higher U.S. Treasury yields after ADP reported bigger-than-expected 198,000 gain in U.S. private-sector jobs in February (vs. +175,000 forecast), raising expectations for upbeat U.S. nonfarm payrolls report Friday; U.S. Federal Reserve Beige Book showing growth in most of the Fed's 12 districts in January and early February.
Recommendation:
Sell below 0.831 with first target in sight at 0.8252 and second target in sight at 0.823.
Support levels:
S1 - 0.8253 (Tuesday's low)
S2 - 0.8232
S3 - 0.8190 (Monday's two-month low)
Alternative scenario:
Buy above 0.831 with upside targets at 0.835 and 0.839.
Resistance levels:
R1 - 0.8349-0.8353 (Wednesday's high-Feb. 26 high)
R2 - 0.839
R3 - 0.8417 (Feb. 25 high).
Technical сomment:
The pair has broken its upward channel and stands below its resistance.
