Overview:
NZD/USD is consolidating with bearish bias after hitting two-month low of 0.8214 on Friday. The rate is undermined by positive USD sentiment, weak commodity prices; Kiwi sales on buoyant AUD/NZD cross. But NZD/USD downside limited by positive investor risk appetite. Daily chart is negative-biased as MACD and stochastics are bearish, although latter is at oversold; five- and 15-day moving averages are falling.
Recommendation:
Sell below 0.8255 with first target at 0.8185 and second target at 0.815 .
Support levels:
S1 - 0.8189 (Dec. 31 low)
S2 - 0.8153 (Dec. 26 reaction low, near 200-day moving average)
S3 - 0.8108 (Nov. 21 low).
Alternative scenario:
Buy Above 0.8255 with first target at 0.8294 and second target at 0.8323 .
Resistance levels:
0.8294 (Friday's high)
0.8323 (Thursday's high)
0.8353 (Tuesday's high)
Comment:
The RSI is showing downtrend and the pair is below its declining trend line.