Overview:
NZD/USD is trading with risks skewed higher. NZD sentiment was dented on Thursday by more-dovish-than-expected policy statement from Reserve Bank of New Zealand. NZD/USD is also undermined by Kiwi sales on buoyant AUD/NZD cross. But NZD/USD supported by positive global risk sentiment; NZD-USD yield gap; positions adjustment before weekend. Daily chart still negative-biased as MACD bearish, while stochastics stays suppressed at oversold, although inside-day-range pattern was completed on Thursday.
Recommendation:
Buy above 0.8185 with upside targets at 0.8235 and 0.8275.
Resistance levels:
R1 - 0.8276-0.8284 band (Wednesday's high-Monday's high)
R2 - 0.8297 (March 8 high)
R3 - 0.8345
Alternative scenario:
Sell below 0.8185 with targets in view at 0.816 and 0.8125.
Support levels:
S1 - 0.8159-0.8153 band (Wednesday's low-Dec. 26 reaction low)
S2 - 0.8108 (Nov. 21 low)
S3 - 0.8125
