FX.co ★ NZD/USD: Downside

Overview:
NZD/USD is trading with bearish bias after hitting near-three-month low of 0.8159 overnight. Kiwi sentiment became soft after Reserve Bank of New Zealand held its benchmark interest rate at 2.50% but was more dovish than expected in its statement, noting there were both "upside and downside risks" to its outlook, and RBNZ Gov. Wheeler said strength of NZD was a considerable concern, it had been expected to keep RBNZ's policy rate unchanged through the end of the year. NZD/USD is also weighed by positive USD sentiment; weaker commodity prices; Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses tempered by improved investor risk sentiment; NZD-USD yield gap.
Recommendation:
Sell below 0.8215 with first target at 0.8159 and 0.8108.
Support levels:
R1 - 0.8159-0.8153 band (Wednesday's low-Dec. 26 reaction low)
R2 - 0.8108 (Nov. 21 low)
R3 - 0.8048 (Nov. 16 reaction low).
Alternative scenario:
Buy above 0.8215 with first target in sight at 0.824 and second target at 0.827.
Resistance levels:
R1 - 0.824
R2 - 0.8276-0.8284 band (Wednesday's high-Monday's high)
R3 - 0.8297 (Friday's high)
Technical comment:
Daily chart is negative-biased as MACD is bearish, stochastics has reverted to bearish mode at oversold; five- and 15-day moving averages are falling.