Overview:
NZD/USD is trading with bullish bias. The rate is underpinned by negative USD sentiment; NZD-USD yield gap; Kiwi demand on buoyant NZD/JPY as weak yen sentiment supports the cross; Kiwi demand on soft AUD/NZD cross. But NZD/USD gains tempered by weaker risk appetite; soft commodity prices; Kiwi sales on rising EUR/NZD and GBP/NZD crosses. Daily chart is positive-biased as MACD bullish, while stochastics stays elevated at overbought, five- and 15-day moving averages are advancing.
Recommendation:
Buy above 0.8395 with upside targets at 0.847 and 0.8489.
Resistance levels:
R1 - 0.847
R2 - 0.8489 (Feb. 19 high)
R3 - 0.8534 (Feb. 15 reaction high).
Alternative scenario:
Sell below 0.8395 with downside targets at 0.83732 and 0.8348.
Support levels:
S1 - 0.8372 (Friday's low)
S2 - 0.8349-0.8341 band (April 1 low-March 27 low)
S3 - 0.8305 (March 22 low)
