Overview:
NZD/USD is trading with risks skewed lower. The rate is undermined by soft commodity prices; subdued investor risk appetite. But NZD/USD losses tempered by weak USD sentiment; NZD-USD yield gap. Kiwi is vulnerable to slew of China. Daily chart is mixed as MACD is bullish, five- and 15-day moving averages are advancing; but stochastics has turned bearish at overbought.
Recommendation:
Sell below 0.853 with downside targets at 0.845 and 0.8425.
Support levels:
S1 - 0.8450 (Tuesday's low)
S2 - 0.8425
S3 - 0.8398 (April 8 low), 0.8372 (April 5 low) and 0.8360 (April 2 low).
Alternative scenario:
Buy above 0.853 with upside targets 0.8565 and 0.86.
Resistance levels:
R1 - 0.8565
R2 - 0.86
R3 - 0.865
