EUR/PLN 1H Chart: Medium term decline
The common European currency has been declining since the start of July against the Polish Zloty. The event from a technical perspective began due to the currency rate meeting the upper trend line of a dominant ascending channel pattern. The bounce off resulted in the formation of a descending medium term pattern, which is likely going to guide the rate further.
In regards to the short term future, the pair is set to meet with a combined resistance of the 55 and 200-hour simple moving averages, which strengthen the upper trend line of the descending pattern.
If the rate passes that resistance, the 4.38 level, where the 100-hour SMA is located at, will be targeted.
In regards to the short term future, the pair is set to meet with a combined resistance of the 55 and 200-hour simple moving averages, which strengthen the upper trend line of the descending pattern.
If the rate passes that resistance, the 4.38 level, where the 100-hour SMA is located at, will be targeted.
The common European currency found support against the Polish Zloty. Namely, the previous decline has ended and the junior ascending pattern was broken on early Wednesday morning.
By the middle of Wednesday’s trading the rate had surged above significant resistance levels near the 4.3380 mark. Moreover, as it managed to pass these resistance levels, it approached a clear range, in which it might surge up to the 4.3620 level.
However, note that it is more likely that the rate will surge gradually at an angle in a similar range as the previous medium term pattern.