EUR/PLN 1H: Pair tests senior pattern
The EUR/PLN exchange rate is trading in two prominent channels. The most senior pattern is an ascending channel which was formed in December 2017, while the more junior one has been guiding the Euro since the beginning of June.
The pair reversed from the senior channel on August 17. It did, however, fail to accelerate, being restricted by the junior channel and the monthly PP at 4.32. As a result, it had returned near the senior channel today.
Two scenarios should be considered. First, in case the senior channel near 4.2650 remains intact, the rate should target the junior channel circa 4.31 and eventually breach it to the upside. Second, bearish sentiment could prevail in the market, thus setting the 200-day SMA and the monthly S1 at 4.2250 as the most probable downside target.
The pair reversed from the senior channel on August 17. It did, however, fail to accelerate, being restricted by the junior channel and the monthly PP at 4.32. As a result, it had returned near the senior channel today.
Two scenarios should be considered. First, in case the senior channel near 4.2650 remains intact, the rate should target the junior channel circa 4.31 and eventually breach it to the upside. Second, bearish sentiment could prevail in the market, thus setting the 200-day SMA and the monthly S1 at 4.2250 as the most probable downside target.
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