“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 the market rejected the support area and continues to increase. We are now at the level of the two-week highs and breaking that level could open way for further increases in the area around 4.3678.
For several days price oscillates around downtrend line, the rejection could be a signal for the continuation of the existing trend for a long time. It is worth noting the nearby area of resistance, which according to the rule of polarity change market should test before further declines.
Looking at the H4 chart we can see that the said supply zone not only coincides with the level of 38.2% correction of the whole earlier declines (Daily Chart) but also with the level of 61.8% of the last impulse. Given the relatively small dynamic of growth ongoing for nearly three weeks in the near future we can expect a strong supply response which is a signal for the continuation of declines.
For several days the market is moving in a downward channel which is forming a corrective flag formation. We are currently testing the upper limit of formation and if only supply rejects current resistance, then we might expect declines in the area of the lower limit of the channel and local support 3.9413 coinciding with the golden ratio 61.8% Fibonacci correction of last week’s gains.
Alternative scenario would assume overcoming the current level and breaking top of the channel which could be a signal to continue ongoing for several weeks upward trend.