The New Zealand Dollar (NZD) plunged against the US Dollar (USD) on Thursday, dragging the price of NZDUSD to less than 0.6900 following the release of Gross Domestic Product (GDP) news in early Asian session. The technical bias remains bearish because of a lower low and lower high in the ongoing downside move.

Technical Analysis

As of this writing, the pair is being traded around 0.6898. A support can be seen near 0.6890, a short term horizontal support ahead of 0.6869, the intraday low of Tuesday and then 0.6672, the swing low of the last major downside move as demonstrated in the given below daily chart.

On the upside, the pair is expected to face a hurdle near 0.7035, the horizontal resistance area ahead of 0.7238, the swing high of the last major upside rally and then 0.7403, the high of November 2016. The technical bias shall remain bearish as long as the 0.7238 resistance area is intact.

New Zealand Trade Balance

New Zealand’s gross domestic product rose more-than-expected in the last quarter, official data showed on Wednesday. In a report, Statistics New Zealand said that New Zealand’s GDP rose to a seasonally adjusted 1.1%, from 0.7% in the preceding quarter whose figure was revised down from 0.9%. Analysts had expected New Zealand’s GDP to rise 0.9% in the last quarter.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair on rallies could be a good strategy in short to medium term. Alternatively, buying near current levels may also be a good move if we get a valid bullish reversal candle on the daily chart.