Overview:
NZD/USD is consolidating with bullish bias after hitting one-month high of 0.8396 this morning. The rate is underpinned by better-than-expected New Zealand February trade data; positive investor risk appetite; buoyant commodity prices; Kiwi demand on soft EUR/NZD, GBP/NZD and AUD/NZD crosses; NZD-USD yield gap. 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
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 - 0.8275
S3 - 0.8245
