Overview:
NZD/USD is consolidating after hitting one-month high of 0.8396 on Wednesday. The rate is supported by upbeat New Zealand 4Q GDP and February trade data; Kiwi demand on soft EUR/NZD and AUD/NZD crosses and on buoyant NZD/CHF cross; NZD-USD yield gap. But NZD/USD upside is limited by subdued investor risk appetite; positive USD sentiment; positions adjustment ahead of Good Friday holiday. Daily chart is mixed as MACD is bullish, 5- and 15-day moving averages are rising; but stochastics is turning bearish at overbought.
Recommendation:
Buy above 0.833 with upside targets at 0.8395 and 0.8417.
Resistance levels:
R1 - 0.8396 (Wednesday's high)
R2 - 0.8417 (Feb. 25 high)
R3 - 0.8489 (Feb. 19 high)
Alternative scenario:
Sell below 0.833 with downside targets at 0.83 and 0.827.
Support levels:
S1 - 0.8305 (Friday's low, near 100-day moving average)
S2 - 0.827
S3 - 0.8212-0.8207 (March 21 low-March 20 low, near 200-day moving average)