Overview:
NZD/USD is consolidating with bullish bias as markets await 20:00 GMT Reserve Bank of New Zealand's Official Cash Rate announcement: central bank widely expected to remain on hold. Focus will be on accompanying statement and RBNZ's forecasts for any clues about when it might move to hike its policy rate. NZD/USD undermined by subdued risk appetite; Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses tempered by firmer commodity prices; NZD-USD yield gap. Daily chart is mixed as MACD is bearish, but stochastics is in bullish mode; inside-day-range pattern was completed on Tuesday.
Recommendation:
Buy above 0.8225 with upside first target at 0.829 and second target at 0.8315.
Resistance levels:
0.8280-0.8284 (Tuesday's high-Monday's high)
0.8313 (Thursday's high)
0.8349-0.8353 (March 6 high-Feb. 26 high), 0.8417 (Feb. 25 high) and 0.8489 (Feb. 19 high).
Alternative scenario:
Sell below 0.8225 look downside targets at 0.821 and 0.8185.
Support levels:
0.822 (Tuesday's low)
0.8189-0.8184 (Monday's low-Friday's low, near 200-day moving average)
0.8153 (Dec. 26 reaction low).
