Following a rebound from a 2,5-year low of 4.1317 late in January, the EUR/PLN exchange began moving higher in an ascending channel. This junior pattern proved to be strong enough to allow for a breakout of the dominant five-month channel last week (dashed lines).
Technical indicators suggest that some upside potential still exists in the market. It could be capped near 4.2050 where the upper boundary of a medium-term channel, the monthly and weekly R1s and the 38.20% Fibo retracement are located. Given this significant resistance area, it is likely that the Euro corrects southwards and falls down to the 55– and 100-hour SMAs and the weekly PP circa 4.19.
If looking at the pair’s movement during the two following weeks, the medium-term channel could surrender under the bullish pressure, thus paving the way for a surge in the medium term.
Technical indicators suggest that some upside potential still exists in the market. It could be capped near 4.2050 where the upper boundary of a medium-term channel, the monthly and weekly R1s and the 38.20% Fibo retracement are located. Given this significant resistance area, it is likely that the Euro corrects southwards and falls down to the 55– and 100-hour SMAs and the weekly PP circa 4.19.
If looking at the pair’s movement during the two following weeks, the medium-term channel could surrender under the bullish pressure, thus paving the way for a surge in the medium term.