EUR/PLN 1H Chart: Wedge demonstrates downside potential
The Euro has weakened notably against the Polish Zloty within the previous four months. During this time, the pair has diminished its trading range and formed a falling wedge pattern.
The most recent test of its upper boundary started on January 19. The rate remained near this line for several sessions, but eventually fell down to the weekly S3 near 4.1350. In line with the prevailing wedge, the pair should decline even further down to its bottom boundary located near the 4.11 mark. This scenario should be realised next week.
Meanwhile, it is expected that a brief correction up might be due. This increase in price, however, should not be long-lasting, as the northern side is limited by some notable resistance levels, such as the 100– and 200-hour SMAs, as well as the weekly and monthly S1s in the 4.1470/4.1600 area.
The most recent test of its upper boundary started on January 19. The rate remained near this line for several sessions, but eventually fell down to the weekly S3 near 4.1350. In line with the prevailing wedge, the pair should decline even further down to its bottom boundary located near the 4.11 mark. This scenario should be realised next week.
Meanwhile, it is expected that a brief correction up might be due. This increase in price, however, should not be long-lasting, as the northern side is limited by some notable resistance levels, such as the 100– and 200-hour SMAs, as well as the weekly and monthly S1s in the 4.1470/4.1600 area.