NZDUSD: Bullish bias
NZD/USD is consolidating with bullish bias as markets are waiting for U.S. Non-farm payrolls report. NZD/USD is supported by negative USD sentiment; more-hawkish-than-expected statement from Reserve Bank of New Zealand; Kiwi demand on buoyant NZD/JPY as negative JPY sentiment supports the cross; NZD-USD yield gap; Kiwi demand on soft AUD/NZD cross. But NZD/USD gains tempered by subdued investor risk appetite; weaker commodity prices; positions adjustment before weekend. Kiwi is vulnerable to China data January CFLP and HSBC final China manufacturing PMI data. Daily chart is mixed as MACD is bearish, but stochastic is in bullish mode.
Buy above 0.837 with targets at 0.845 and 0.8475 in extension.
R1 – 0.8446 (Jan. 24 high)
R2 – 0.8475 (Dec. 14 reaction high)
R3 – 0.85
Sell below 0.837. Below 0.837 look for further downside with 0.834 and 0.831 as targets.
S1 – 0.8341 (Thursday’s low)
S2 – 0.831
S3 – 0.8278 (Monday’s low)
The pair remains on the upside and is approaching its previous high, the RSI stands above its neutral area.
The material has been provided by Instaforex Company – http://www.instaforex.com/