FX.co ★ NZD/USD: Upside

Overview:
NZD/USD is consolidating with bullish bias after hitting near-two-year high of 0.8592 this morning. The rate is underpinned by positive investor risk appetite; buoyant commodity prices; NZD-USD yield gap; Kiwi demand on buoyant NZD/JPY, NZD/CAD and NZD/CHF crosses, and on soft AUD/NZD, GBP/NZD, and EUR/NZD crosses. But NZD/USD gains tempered by positive USD sentiment. 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 0.86 with upside targets at 0.869 and 0.8715.
Resistance levels:
R1 - 0.8 69
R2 - 0.8715
R3 - 0.8745

Alternative scenario:
Sell below 0.86 with downside targets at 0.856 and 0.853.
Support levels:
S1 - 0.856
S2 - 0.853
S3 - 0.8510 (Wednesday's low)