NZD/USD was Underpinned After Better GDP Data

New Zealand Dollar is among the strongest majors following better than expected GDP growth. New Zealand GDP grew 0.7% qoq in Q3, above expectation of 0.5% qoq. Q2’s growth rate was revised sharply lower from 0.5% qoq to 0.1% qoq.

Technically, the next direction of the NZD/USD next sessions is likely to be determined by trader reaction to the 61.8% Fibonacci level at 0.6567.A sustained move there will indicate the presence of buyers. Also on a daily chart we have confirmed bullish cross on 50-day SMA above 100-day SMA. So, we prefer the bullish scenario until the pair keep trading above 200-day SMA at 0.6531. The first upside target is 0.6666. In that area we have the upper boundary of the daily Bollinger Bands, the resistance line of the bullish price channel and 78,6% Fibo level.

On downside, a clear break bellow 0.6567 will indicate that sellers have re-emerged. They are going to try to form a secondary lower top. If this move creates enough downside momentum then look for a break to the 11th Dec. low at 0.6522. Taking out this level will change the main trend to downward with 0.6497 the next major bearish target (50% Fibo).

Take in mind, that additionally, details of the US-China trade relations and US President Donald Trump’s impeachment voting will also entertain investors.

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