EUR/PLN 1H Chart: Slight upside potential ahead
The Euro has been trading in an ascending channel against the Polish Zloty since late December, 2017. The most recent test of this senior pattern occurred mid-June when the pair reversed from the 4.26 area. It has since been guided by the 55– and 100-hour SMAs in a junior channel up.
Technical indicators on longer-term time-frames demonstrate that there is still some upside potential for a bullish surge. Thus, it is expected that the Euro continues to trade in line with the junior and senior patterns, thus going for a test of the upper wedge line near 4.3750/4.3760 this week. The 61.80% Fibonacci retracement, the monthly R1 and the weekly R2 are likewise located in this territory.
At this point, this upward movement might have exhausted itself, thus letting bears to take over the market. This scenario would be confirmed by a downside breakout of the 55– and 100-hour SMAs.
Technical indicators on longer-term time-frames demonstrate that there is still some upside potential for a bullish surge. Thus, it is expected that the Euro continues to trade in line with the junior and senior patterns, thus going for a test of the upper wedge line near 4.3750/4.3760 this week. The 61.80% Fibonacci retracement, the monthly R1 and the weekly R2 are likewise located in this territory.
At this point, this upward movement might have exhausted itself, thus letting bears to take over the market. This scenario would be confirmed by a downside breakout of the 55– and 100-hour SMAs.