Overview:
NZD/USD is consolidating with bullish bias after hitting two-week high of 0.8345 on Thursday. The rate is underpinned by stronger-than-expected New Zealand 4Q GDP data; optimism over China's economy; Kiwi demand on soft EUR/NZD and AUD/NZD crosses; NZD-USD yield gap. But NZD/USD gains tempered by positive USD sentiment; increased risk aversion; weaker commodity prices; positions adjustment before weekend. Daily chart is positive-biased as MACD and stochastics are in bullish mode; five-day moving average staged bullish crossover against 15-day MA.
Recommendation:
Buy above 0.829 with upside targets at 0.8346 and 0.837.
Resistance levels:
R1 - 0.8345-0.8349 (Thursday's high-March 6 high)
R2 - 0.837
R3 - 0.8417 (Feb. 25 high)
Alternative scenario:
Sell below 0.829 with downside targets at 0.8265 and 0.823.
Support levels:
S1 - 0.8265
S2 - 0.823
S3 - 0.8212-0.8207 (Thursday's low-Wednesday's low)
