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Technical Analysis: NZDUSD drops to 200-day SMA amid oversold RSI, USD GDP in focus

Despite breaking an upward sloping trendline since October-start, NZDUSD is yet to register a daily closing below 200-day SMA in order to extend the latest downpour. In doing so, a 50% Fibonacci retracement level of 0.6480 and November 2019 top near 0.6465 will gain the sellers' attention. However, 61.8% Fibonacci retracement level around 0.6410 will limit the pair's downside past-0.6465, if not then the return of November month low near 0.6320 can't be ruled out.

On the upside, the pair needs to cross 0.6545 level, which is beyond the support-turned-resistance and 38.2%, to regain the buyers' confidence. As a result, 0.6585 and 0.6630 could next be aimed at if prices manage to remain strong.

Traders should keep eyes on the economic calendar as the preliminary Q4 US GDP will be out during the US session and is expected to remain unchanged around 2.1%. However, mixed plays between the recent data keep the gates open for surprises.

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