Overview:
NZD/USD is trading in higher range. The rate is supported by positive investor risk appetite; firmer commodity prices; NZD-USD yield gap; Kiwi demand on buoyant NZD/JPY as negative JPY sentiment supports the cross. But NZD/USD gains tempered by worries about sustainability of China's economic recovery. Daily chart is mixed as MACD is bearish, but stochastics is turning bullish near oversold; inside-day-range pattern was completed on Monday.
Recommendation:
Buy above the pivot point of 0.823 with first target at 0.829 and second target at 0.8315.
Resistance levels:
R1 - 0.8284 (Monday's high)
R2 - 0.8313 (Thursday's high)
R3 - 0.8349-0.8353 (Wednesday's high-Feb. 26 high)
Alternative scenario:
Sell below 0.823 with downside targets at 0.8211 and 0.8189.
Support levels:
S1 - 0.8211
S2 - 0.8189-0.8184 (Monday's low-Friday's low, near 200-day moving average)
S3 - 0.8153 (Dec. 26 reaction low), then 0.8108 (Nov. 21 low).