Overview:
NZD/USD is consolidating in lower range after hitting six-week high of 0.8451 on Wednesday. The rate is undermined by heightened risk aversion; weak commodity prices. But NZD/USD losses tempered by NZD-USD yield gap; negative USD sentiment; caution ahead of Friday's U.S. Non-farm payrolls report. Daily chart is still positive-biased as MACD is bullish, stochastics stays elevated at overbought, five- and 15-day moving averages are advancing.
Recommendation:
Sell below 0.8395 with dowmside 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).
Alternative scenario:
Buy above 0.8395 with upside targets at 0.841 and 0.845.
Resistance levels:
R1 - 0.842
R2 - 0.845
R3 - 0.8451 (Wednesday's high)
