“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, after breaking the downtrend line market reached a resistance zone around 4.3133 – 4.3159. A strong sellers response which appeared in the area caused a strong downward impulse so again price tested prior trend line (this time as a support).Currently, from the beginning of the week the market moves in the consolidation and only breakout in any direction could determine the direction of movement in the coming days. Given that, the current correction is a consequence of the strong downward impulse and breaking out downwards seems to be more likely. Realization of this scenario would imply the re-test of the support zone around the 4.2742 level.
This is another currency pair, who reached mentioned in the last analysis target around the 5.0140 level. As we can see, for some time the market was moving in the channels: first downward, then growing. A strong supply response, which occurred in mentioned zone of resistance coinciding with the trend line caused dynamic bearish movement.
Currency pair US Dollar and Polish Zloty for long time moves in a downward channel, which is the correction for the earlier increases. It is worth noting that we are now in the region of the upper band of the channel, which is a line lasting for three months downtrend. The rejection of that level could trigger declines even to the region of the August lows and the 3.7748 support. If, however, a strong bullish sentiment and today’s strong appreciation of the USD will continue, then we could expect a break out and continuation of growth to the level around 3.9180.