The EUR/CZK exchange rate has been trading in a channel-like formation since early 2018. The upper boundary of this pattern was tested on May 1 when the Euro reversed from the 25.75 mark. The pair’s subsequent movement has been downwards until 25.55 where the pair was located at the time of this analysis.
Technical indicators are generally neutral, thus demonstrating that the current movement sideways which has prevailed during the previous two weeks could still dominate the market for a couple of sessions. Technical signals on the daily time-frame, however, are more bearish, thus suggesting that the rate could eventually resume moving lower down to the senior channel around 25.30. The monthly S1 is likewise located near this area.
In case the dashed trend-line and the weekly R1 circa 25.60 are breached to the upside today, traders might see a surge to the opposite channel boundary and the monthly R1 at 25.75.
Technical indicators are generally neutral, thus demonstrating that the current movement sideways which has prevailed during the previous two weeks could still dominate the market for a couple of sessions. Technical signals on the daily time-frame, however, are more bearish, thus suggesting that the rate could eventually resume moving lower down to the senior channel around 25.30. The monthly S1 is likewise located near this area.
In case the dashed trend-line and the weekly R1 circa 25.60 are breached to the upside today, traders might see a surge to the opposite channel boundary and the monthly R1 at 25.75.