FX.co ★ NZD/USD: Upside

Overview:
NZD/USD is trading in higher range. The rate is supported by weaker USD sentiment; NZD-USD yield gap. But NZD/USD upside is limited by reduced investor risk appetite. USD sentiment soothed by brighter outlook for U.S. housing sector after higher-than-expected 1.2% increase in U.S. February construction spending (vs. +1.0% forecast). Daily chart is positive-biased as bullish outside-day-range pattern was completed on Monday, MACD is bullish, stochastics is reverting to bullish mode at overbought.

Recommendation:
Buy above 0.839 with upside targets at 0.8455 and 0.8489.
Resistance levels:
R1 - 0.8455(Feb. 25 high)
R2 - 0.8489 (Feb. 19 high)
R3 - 0.8534 (Feb. 15 top).
Alternative scenario:
Sell below 0.839 with downside targets at 0.837 and 0.8345.
Support levels:
S1 - 0.837
S2 - 0.8333-0.8323 band (March 26 low-March 25 low, near 100-day moving average)
S3- 0.8305 (March 22 low)