FxWirePro: NZD/USD reverses course, bias shifts back to the downside

• NZD/USD dropped sharply on Thursday as upbeat New Zealand data was overshadowed by a stronger U.S. dollar.

•The US dollar recovered from  five-month lows   after the Federal Reserve indicated rate cuts were likely later this year despite uncertainties around U.S. tariffs

• Data showed New Zealand's economy   economy grew faster than forecast in the fourth quarter, dragging the economy out of recession.

•New Zealand's GDP rose 0.7% in the December quarter, exceeding analysts' expectations of 0.4% and the central bank's 0.3% forecast. This growth followed a revised 1.1% contraction in Q3.

• Despite the strong data, the RBNZ is unlikely to change its planned rate cuts due to ongoing economic weakness and rising trade tensions.

•  Immediate resistance is located at 0.5770(38.2%fib), any close above will push the pair towards 0.5825(23.6%fib).

•  Support is seen at 0.5742 (March 17th low) and break below could take the pair towards 0.5724(50%fib).

 Recommendation: Good to sell around 0.5770, with stop loss of 0.5850 and target price of 0.5700