Overview:
NZD/USD is consolidating with bearish bias as markets are await U.S. Non-Farm Payrolls report. NZD/USD is supported by negative USD sentiment; positive global risk sentiment; NZD-USD yield gap; Kiwi demand on buoyant NZD/JPY cross. But NZD/USD upside is limited by weak commodity prices; Kiwi sales on rebounding EUR/NZD and GBP/NZD crosses; positions adjustment before weekend. Daily chart is positive-biased as MACD is bullish, while stochastics stays elevated at overbought, five- and 15-day moving averages are advancing.
Recommendation:
Sell below 0.8425 with downside targets at 0.838 and 0.8362.
Support levels:
S1 - o.839
S2 - 0.8362-0.8360 (Thursday's low-Tuesday's low)
S3 - 0.8333-0.8323 band (March 26 low-March 25 low, near 100-day moving average)
Alternative scenario:
Buy above 0.8425 with upside targets at 0.845 and 0.847.
Resistance levels:
R1 - 0.8451 (Wednesday's high)
R2 - 0.8489 (Feb. 19 high)
R3 - 0.8534 (Feb. 15 reaction high)