FX.co ★ NZD/USD: The Upside Prevails

Overview:
NZD/USD is trading with risks skewed higher. The rate is supported by reduced worries over Greece; weaker USD sentiment; NZD-USD yield gap. But NZD sentiment is dented by wider-than-expected New Zealand October trade deficit of NZD 718 million (vs. NZD 450 million forecast). NZD/USD gains also tempered by worries over U.S. fiscal cliff.
Preference:
Buy above 0.82 with targets 0.825 and 0.8265 in extension.
Resistance Levels:
R1 - 0.825
R2 - 0.8265
R3 - 0.8308 (Nov. 7 high)
Alternative scenario:
Sell below 0.82. Below 0.82 look for further downside with 0.8165 and 0.813 as targets.
Support Levels:
S1 - 0.8165
S2 - 0.8130 (Thursday's low)
S3 - 0.8108 (Wednesday's low)
Techncial Comment:
The RSI broke above a bearish trend line. Daily chart is positive-biased as MACD and stochastics are bullish; five-day moving average is above 15-day MA and rising, though inside-day-range pattern was completed on Monday.