“A glimpse at PLN” is the series of analysis created in cooperation with the InterTrader broker. You can track all these analysis every Tuesday and Thursday on Comparic. The aim is to present the current market situation on the currency pairs connected with the PLN.
According to our latest projection market reached this week a very important resistance area. Strong bullish impulse that overcame this resistance has opened the way for further growth. Currently, market is re-testing the zone as a support and to bullish scenario could be realized would be necessary to reject this level, specially that it coincides with the trend line growth.
According to our analysis from Thursday, market rejected the local support @4.7420 and reached the expected resistance of 4.7977 coinciding with the level of 38.2% Fibonacci correction of the earlier declines. Given the angle of all the growth movement we can assume that this is a correction, and if in the near future will be a strong supply response, then we can expect a continuation of the previous downward trend.
Given the distance from the trend line, we expect a more gentle approach even in the area of the momentum of 50% or 61.8% Fibonacci and only after the rejection of one of these levels declines to continue.
Last week, the market rapidly moved up as a result of which overcame the downward trend line and the local resistance 3.8814. Currently we are in the area of a very important level 3.9257, break of which could open way for further gain in the medium term.
However if the bears will have enough strength to overcome local support 3.9124, then we could also expect a re-test of the level 3.8814.