The NZDUSD pair remains under pressure near 0.6075 in early Asian trading on Tuesday, affected by weak Chinese economic data and a modest rebound in the US Dollar. Attention is on the upcoming US Retail Sales data for June. Focus will also shift to New Zealand’s CPI inflation data due on Wednesday. Expectations are that New Zealand’s CPI inflation will slow more than the Reserve Bank of New Zealand (RBNZ) anticipates for Q2, potentially leading to interest rate cuts. The annual CPI is projected to rise by 3.5% in Q2, down from 4.0% previously, while the quarterly CPI is forecast to increase by 0.6%.
NZDCHF – H4 Timeframe
The 4-hour timeframe of NZDCHF presents an interesting price action as we see price currently trading within the demand zone, and resting on top of the support line. Considering the support trendline as an additional confluence, I anticipate an initial bounce from the area of confluence since price is yet to cover up the area of the Fair Value Gap at the previous high. My sentiment in this case is bullish, unless price breaks below the current low.
Analyst’s Expectations:
- Direction: Bullish
- Target: 0.55015
- Invalidation: 0.54008
NZDUSD – H4 Timeframe
In the case of NZDUSD, we can see a clear SBR (Sweep-Break-Retest) price action pattern. The current price also is seen trading within the area of demand, after the inducement has been overtaken. Pairing the SBR pattern with the trendline support and the 88% of the Fibonacci retracement; it is my belief that price would make an initial bounce from this region
Analyst’s Expectations:
- Direction: Bearish
- Target: 0.61555
- Invalidation: 0.60398
 anticipates for Q2, potentially leading to interest rate cuts. The annual CPI is projected to rise by 3.5% in Q2, down from 4.0% previously, while the quarterly CPI is forecast to increase by 0.6%.){kind=link}