After finding strong support near the 4.520 hurdle last week, EUR/PLN moved sharply higher, breaking a short-term tentative downside resistance line taken from the high of March 31st. Although this morning the pair moved a bit lower, the rate still remains above a short-term tentative upside support line drawn from the low of April 12th, that’s why the move lower could be classed as a temporary correction. Despite seeing a potential move higher in the near-term, we would still prefer to wait for a push above the current high of this week, at 4.573. We will take a somewhat-positive approach for now.
If, eventually, the move above the 4.573 hurdle occurs, this will confirm a forthcoming higher high, possibly clearing the path towards higher areas. EUR/PLN could then drift to the 4.586 zone, which acted as a god support on April 6th. If the bulls continue to dominate the field, they may easily drag the rate to the high of April 5th, at 4.608, where the upmove might get halted for a bit.
At the time of writing, the RSI is pointing higher, while resting above 50. The MACD is currently flat but remains above its trigger line and sits fractionally above zero. The two indicators seem to support the idea discussed above.
Alternatively, if the aforementioned upside line breaks and the rate falls below the 4.536 hurdle, marked by an intraday swing high of April 12th, that could spook the bulls from the field temporarily. EUR/PLN may drift back to the current lowest point of April, at 4.520. The pair might stall there for a bit, but if the bears are still behind the steering wheel, they could overcome the 4.520 obstacle and aim for the 4.502 level, marked by the low of February 25th.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.07% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.