Overview:
NZD/USD--to trade with risks skewed higher. Underpinned by positive risk appetite; NZD-USD yield gap. But NZD/USD gains tempered by Kiwi sales on buoyant AUD/NZD cross. Kiwi vulnerable to 0145 GMT February HSBC China flash manufacturing PMI data. Daily chart still negative-biased as MACS & stochastics in bearish mode.
Preference:
Sell below 0.8395 with targets at 0.8345 and 0.8310 in extension.
Support Levels:
S1 - 0.8345
S2 - 0.8312-0.8307 (Thursday's low-Feb. 11 low)
S3 - 0.8278 (Jan. 28 low)
Alternative scenario:
Buy above 0.8395. Above 0.8395 look for further upside with 0.8415 and 0.845 as targets.
Resistance Levels:
R1 - 0.8415
R2 - 0.845
R3 - 0.8489 (Tuesday's high)
Technical Comment:
The pair is rebounding and is challenging its resistance, caution.