Overview:
NZD/USD is consolidating with bullish bias after hitting one-month high of 0.8371 on Monday. The rate is supported by surprise New Zealand February trade surplus of NZD414 million (vs. forecast for zero trade balance); Kiwi demand on soft EUR/NZD cross; NZD-USD yield gap. But NZD/USD gains tempered by negative risk sentiment. Daily chart is positive-biased as MACD and stochastics are bullish, although latter is at overbought; five-day moving average is above 15-day MA and advancing.
Recommendation:
Buy above 0.833 with upside targets at 0.8395 and 0.8417.
Resistance levels:
R1 - 0.8395 (Monday's high)
R2 - 0.8417 (Feb. 25 high)
R3 - 0.8489 (Feb. 19 high).
Alternative scenario:
Sell below 0.833 with downside targets at 0.8305 and 0.827.
Support levels:
S1 - 0.8305 (Friday's low, near 100-day moving average)
S2 - 0.827
S3 - 0.8212-0.8207 (Thursday's low-Wednesday's low, near 200-day moving average
