EUR/PLN 1H Chart: Euro bound to breach wedge
The appreciation of EUR/PLN has been guided by a medium-term rising wedge since early April. This has allowed the pair to strengthen by 4.50% up to its one-year high of 4.34 reached on May 30.
It seems that this pattern might soon reach its maturity, thus pointing to a soon breakout. From technical point of view, the bottom boundary of this wedge should surrender. This assumption is likewise supported by technical indicators on the 1D time-frame which are located at the oversold territory. Thus, a medium-term depreciation is the more likely scenario.
In the meantime, the Euro might be reluctant to breach the bottom wedge line near 4.31 on the first occasion, as this level is supported by the 200-hour and 55-period (4H) SMAs. In case upside momentum prevails in the short term, the aforementioned yearly high should remain intact.
It seems that this pattern might soon reach its maturity, thus pointing to a soon breakout. From technical point of view, the bottom boundary of this wedge should surrender. This assumption is likewise supported by technical indicators on the 1D time-frame which are located at the oversold territory. Thus, a medium-term depreciation is the more likely scenario.
In the meantime, the Euro might be reluctant to breach the bottom wedge line near 4.31 on the first occasion, as this level is supported by the 200-hour and 55-period (4H) SMAs. In case upside momentum prevails in the short term, the aforementioned yearly high should remain intact.