Overview:
NZD/USD is trading with bearish bias after hitting six-day low of 0.8325 Wednesday. Kiwi sentiment hurt after RBNZ Gov. Wheeler warned the central bank "stands ready to intervene in the currency when circumstances are right." NZD/USD is also weighed by stronger USD sentiment; increased risk aversion; weaker commodity prices; Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses tempered by NZD-USD yield gap. Daily chart is negative-biased as stochastics is in bearish mode, MACD is turning bearish; bearish parabolic stop-and-reverse signal hit at 0.8326 on Wednesday.
Preference:
Sell below 0.839 with targets at 0.8305 and 0.828 in extension.
Support levels:
S1 - 0.8307 (Feb. 11 low)
S2 - 0.828 (Jan. 28 low)
S3 - 0.8211 (Jan. 4 low).
Alternative scenario:
Buy above 0.839. Above 0.839 look for further upside with 0.8415 and 0.845 as targets.
Resistance levels:
R1 - 0.8416
R2 - 0.845 (Tuesday's high)
R3 - 0.8534 (Friday's 17-month high)
Technical comment:
The pair stands below its new resistance and remains on the downside, the RSI is posting a rebound but stands below its neutrality area.