FX.co ★ NZD/USD: Supported By a Rising Trend Line

Overview:
NZD/USD is consolidating in lower range after hitting nine-and-a-half month high of 0.8460 on Thursday. The pair is undermined by decreased investor risk appetite; weaker commodity prices; profit-taking on Kiwi-longs before weekend. But NZD/USD losses tempered by NZD-USD yield gap; kiwi demand on soft AUD/NZD cross; weaker USD sentiment. The kiwi is vulnerable to 01:45 GMT December HSBC China flash manufacturing PMI data.
Preference:
Long positions above 0.841 with targets 0.847 and 0.85 in extension.
Resistance Levels:
R1 - 0.8460-0.8470 band (Thursday's high-Feb. 29 high)
R2 - 0.85
R3 - 0.8571 (Aug. 31, 2011 high)
Alternative scenario:
Sell below 0.841. Below 0.841 look for further downside with 0.8375 and 0.836 as targets.
Support Levels:
S1 - 0.8383 (Wednesday's low)
S2 - 0.836
S3 - 0.8333 (Tuesday's low)
Technical Comment:
The immediate trend remains up and the momentum is strong. Daily chart is mixed as MACD is bullish, 5- & 15-day moving averages are rising; but stochastic turned to bearish at overbought.