On Friday Standard & Poor’s rating agency cut the Poland’s rating and warned of a further cuts. S&P in note pointed at new government’s actions without reference to the Poland’s economy. Despite that other agencies does not opt to identical moves, polish zloty weakened.
CHFPLN currency pair is very popular because a thousands of Poles have debt in CHF. At chart below we cann see side trend since February 2015. CHFPLN moved between levels 3.8000 – 4.0600 by the last Friday when demand broke above 4.0600 level. Currently the rebound movement should occur and price should decline to 4.0600. If price rebounds from that level we will see a new uptrend impulse. However if supply is stonger and price returns below 4.0600 friday’s level, breakout will be a false one and price will move toward the lower limit of the channel.