FX.co ★ NZDUSD: Downside

Overview:
NZD/USD is consolidating in lower range after hitting 17-month high of 0.8481 on Monday. The rate is undermined by comment from NZ Prime Minister John Key that the Kiwi is overvalued against the U.S. dollar; heightened investor risk aversion; softer commodity prices; Kiwi sales on rebounding AUD/NZD cross. But NZD/USD losses tempered by NZD-USD yield gap. Daily chart is mixed as MACD and stochastic are in bullish mode; but bearish dark-cloud-cover candlestick pattern was completed on Monday.
Preference:
Sell below 0.847 with targets at 0.8385 and 0.834 in extension.
Support levels:
S1 - 0.8384 (Friday's low)
S2 - 0.8341 (Thursday's low)
S3 - 0.8290 (Wednesday's low)
Alternative scenario:
Buy above 0.847. Above 0.847 look for further upside with 0.851 and 0.853 as targets.
Resistance levels:
R1 - 0.851
R2 - 0.853
R3 - 0.857
Technical comment:
The upward potential is likely to be limited by the resistance at 0.847.