“A glimpse at Polish Zloty” 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, on Tuesday the market tested again the support area around 4.2716 – 4.2742. Currently we can see the struggle of demand and supply in the area close to downtrend line. Breaking this level would be the first sign of change in the market sentiment, but to confirm a trend change fully we need to overcome the resistance zone around the 4.3133 level and then create higher peak. However, if the market will break current level permanently, we can expect increases at least above mentioned resistance area.
After Tuesday’s defeating downtrend line the market continues increasing. Because of that yesterday we have overcame local resistance at 4.9772. As we can see on the H1 time frame, mentioned level was very well respected as a new support. In the near future we can expect increases with potential targets at 5.0126 and then 5.0492.
However, there is possibility to return the previous trend, because the last three days growth had very flat angle and it looks more like a correction than a new, strong impulse.
For nearly six days the market is moving in the upward correction. Almost three times we’ve tested and rejected the resistance zone close to 3.8410 level and the 61.8% Fibonacci retracement of the previous downward movement. The angle of current price, the correction that we can see, many tests of the resistance zone, rejecting the 50% momentum, rejecting 61.8% Fibonacci and the downtrend line confirm the possibility of declines in the near future.
Potential levels where we could expect the reaction of demand are 3.7992 and 3.7776 sequentially.