EUR/PLN 1H Chart: Bearish wave in sight
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The common European currency has shown solid growth against the Polish Zloty since February 20. Bulls have managed to push the rate 2.63% higher during this time, thus reaching a four-month peak of 4.2420 earlier today.
The pair’s current movement has been confined in an ascending channel. The Euro, however, has failed to maintain the steep positioning and has therefore diminished its trading range.
Technical indicators on the four-hour time-frame are located in the overbought region, thus pointing to the beginning of a new medium-term decline. The same message is conveyed by shorter-term indicators, especially when the nearest resistance is set by the strong weekly and monthly R2s circa 4.2425.
The expected fall might not be very steep during the following sessions, as the southern barrier is protected by several support levels. Additional bearish momentum should be provided when the Euro breaches the weekly PP, the monthly R1 and the 200-hour SMA at 4.21.
The pair’s current movement has been confined in an ascending channel. The Euro, however, has failed to maintain the steep positioning and has therefore diminished its trading range.
Technical indicators on the four-hour time-frame are located in the overbought region, thus pointing to the beginning of a new medium-term decline. The same message is conveyed by shorter-term indicators, especially when the nearest resistance is set by the strong weekly and monthly R2s circa 4.2425.
The expected fall might not be very steep during the following sessions, as the southern barrier is protected by several support levels. Additional bearish momentum should be provided when the Euro breaches the weekly PP, the monthly R1 and the 200-hour SMA at 4.21.
Nota
The common European currency is fulfilling the previously outlines bearish scenario against the Polish Zloty. Due to that reason we are posting an update to the charts, as there are various notable developments.
The pair has pierced the lower trend line of the previously drawn channel up pattern and most likely will ignore it in the near future. Meanwhile, the recent support that stopped the pair from plummeting was provided by the 55-period SMA of the four hour timeframe.
Meanwhile, Dukascopy Analysts have outlined the possible borders of the speculated dominant ascending pattern by using the recent higher high levels of the currency exchange rate. It is highly possible that this patterns support line is the next medium term target of the rate.
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