FX.co ★ NZD/USD: Upside

Overview:

Overview:
NZD/USD is consolidating with bullish bias after hitting 19-month high of 0.8537 on Tuesday. The rate is underpinned by positive investor risk appetite; weaker USD sentiment; rising commodity prices; NZD-USD yield gap; Kiwi demand on buoyant NZD/CAD and NZD/CHF crosses, and on soft AUD/NZD, GBP/NZD, EUR/NZD crosses. Kiwi is vulnerable to China March trade balance data. Daily chart is positive-biased as MACD is bullish, while stochastics stays elevated at overbought, five- and 15-day moving averages are advancing.

Recommendation:
Buy above 0.8495 with upside targets at 0.859 and 0.8625.
Resistance дevels:
R1 - 0.859
R2 - 0.8625
R3 - 0.865
Alternative scenario:
Sell below 0.8495 with downside targets at 0.8455 and 0.8425.
Support дevels:
S1 - 0.8450 (Tuesday's low)
S2 - 0.8425
S3 - 0.8398 (Monday's low), then 0.8372 (Friday's low), 0.8360 (April 2 low) and 0.8349-0.8341 band (April 1 low-March 27 low).