NZDCHF Price Action Spread – Action Forex

New Zealand’s fourth-quarter inflation data was released overnight, showing headline CPI holding steady at 2.2%, slightly higher than the 2.1% expected. However, the closely watched non-tradable inflation index fell more than expected to 4.5%, the lowest level since late 2021 and below the Reserve Bank of New Zealand’s (RBNZ) previous forecast. This has increased the chances of a 0.50% rate cut by the RBNZ at their meeting on February 19, with further cuts expected later this year. In the near term, the NZDUSD pair may find some support above 0.570, helped by reduced concerns over US tariffs on China and technical factors favoring the NZD after the recent big sell-off. However, the RBNZ’s focus on supporting economic growth is unlikely to provide much strength to the currency in the long run.

NZDCHF – H4 Time Frame

By now I have written so many references to the SBR (Sweep-break-Retest) pattern that any avid reader of my work should already be familiar with the pattern. The SBR pattern shown on the 4-hour time frame chart of NZDCHF begins with the sweep above the previous high, followed by the immediate break below the previous low. Based on this, the supply zone at the origin of the bearish impulse serves as the supply zone of interest. Additionally, the Fibonacci retracement tool places the supply zone near the 88% level, further increasing the likelihood of a reaction from the highlighted supply area.

NZDCHF – H2 Time Frame

The two-hour time frame chart of NZDCHF shows price consolidation within the wedge pattern presented near the 88% Fibonacci retracement level and the supply zone of the SBR pattern. The price should take a bearish turn from the mentioned region for this reason.

The analyst’s expectations:

• Instruction: Bearish
• Measure: 0.50626
• Invalidation: 0.51837