2026-02-17 03:57:00
NZD/CHF has formed what appears to be a head and shoulders pattern on its 4-hour time frame, so can it go for a reversal soon?
Better keep your eyes on this neckline support!
Kiwi traders seem to be positioning cautiously for the February RBNZ decision, capping the earlier rally on NZD/CHF and putting the pair back in consolidation mode.
Price is hovering above the neckline support near the 200 SMA dynamic inflection point while waiting for stronger directional cues.
Which way could it go from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the New Zealand dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Long red candlesticks closing below the current support zone could suggest that Kiwi bears have gotten the upper hand, possibly dragging NZD/CHF down to the next bearish targets at S1 (.4610) then S2 (.4580).
On the other hand, reversal candles could suggest that a bounce is due, allowing the uptrend to carry on to the potential resistance levels at R1 (.4670) then the February highs near R2 (.4710).
Just be sure to account for additional volatility during the RBNZ decision and press conference since this marks RBNZ Governor Anna Breman’s first major event as the new central bank head. Whether she leans more cautious or optimistic could set the tone for monetary policy expectations, likely setting near-term Kiwi trends.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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