After rebounding to the lowest level in two and a half years at 4.1330 in mid-February, the euro started to move up a rising channel against the Polish zloty.
The EUR/PLN currency pair even peaked at 4.21523 earlier today.
The junior trend channel on the EUR/PLN pair proved strong enough to allow a break of the dominant five-month channel last week (dashed lines).
The technical indicators suggest that there is still upside potential in the market. It could be capped near 4.22 or near the upper limit of a medium-term channel, where monthly and weekly R1 and 38.20% Fibonacci retracement are located. Given this significant area of resistance, it is likely that the euro corrects south against the Polish zloty and falls to moving averages of 55 and 100 hours and to the weekly PP around 4.19.
If we look at the movement of the pair over the next two weeks, the medium-term channel could capitulate under the upward pressure, opening the way for a further surge in the medium term.
Source: Dukascopy, an innovative Swiss online bank based in Geneva, Switzerland, which provides trading services via the Internet and smartphones (specializing in currencies, precious metals, CFDs and binary options), as well as banking and banking services. other financial services via advanced technological solutions developed in-house.
Dukascopy Bank is authorized and supervised by the Swiss Financial Market Supervisory Authority FINMA, both as a bank and as a securities dealer. Visit » Official Website