Overview:
NZD/USD is consolidating with bullish bias after hitting six-week high of 0.8445 on Tuesday. The rate is supported by Kiwi demand on soft AUD/NZD, EUR/NZD, and GBP/NZD crosses; NZD-USD yield gap. But NZD/USD gains tempered by improved USD sentiment; weaker commodity prices. Daily chart is positive-biased as MACD is bullish, while stochastics stays elevated at overbought, five- and 15-day moving averages are advancing.
Recommendation:
Buy above 0.839 with upside targets at 0.846 and 0.8489.
Resistance levels:
R1 - 0.846 (Tuesday's high)
R2 - 0.8489 (Feb. 19 high)
R3 - 0.8534 (Feb. 15 top).
Alternative scenario:
Sell below 0.839 with downside targets at 0.836 and 0.8346.
Support levels:
S1 - 0.8360 (Tuesday's low)
S2 - 0.8349-0.8341 band (Monday's low-March 27 low)
S3 - 0.8333-0.8323 band (March 26 low-March 25 low, near 100-day moving average)
