Overview:
NZD/USD is consolidating with bullish bias after hitting one-month high of 0.8363 on Friday. Kiwi sentiment was positive after last week's stronger-than-expected New Zealand 4Q GDP data. NZD/USD is also supported by Kiwi demand on soft EUR/NZD and AUD/NZD crosses; weaker USD sentiment; NZD-USD yield gap; firmer commodity prices. Daily chart is positive-biased as MACD and stochastics are in bullish mode; five-day moving average is above 15-day MA and advancing.
Recommendation:
Buy above 0.83 with upside targets at 0.8363 and 0.84.
Resistance levels:
R1 - 0.8363 (Friday's high)
R2 - 0.84
R3 - 0.8417 (Feb. 25 high)
Alternative scenario:
Sell below 0.83 with downside targets with 0.8275 and 0.8235.
Support levels:
S1 - 0.8275
S2 - 0.8235
S3 - 0.8212-0.8207 (Thursday's low-Wednesday's low, near 200-day moving average)
