Overview:
NZD/USD is consolidating in higher range after hitting two-month low of 0.8190 on Monday. The rate is supported by increased investor risk tolerance; NZD-USD yield gap. Daily chart is mixed as MACD is bearish, but stochastics is turning bullish at oversold; bullish-engulfing candlestick pattern was completed on Monday.
Recommendation:
Buy above 0.823 with first targets at 0.8295 and second target at 0.8323.
Resistance levels:
R1 - 0.8294 (Friday's high)
R2 - 0.8323 (Thursday's high)
R3 - 0.8353 (Feb. 26 high)
Alternative scenario:
Sell below 0.823 with target in sight at 0.8189 and second target at 0.8153.
Support levels:
S1 - 0.8190-0.8189 (Monday's low-Dec. 31 low)
S2 - 0.8153 (Dec. 26 reaction low, near 200-day moving average)
S3 - 0.8108 (Nov. 21 low)