EUR/PLN 1H Chart: Pair confined by three channels
The Euro’s movement against the Polish Zloty has been guide by several patterns since mid-September. The dominant one is a steep channel down. Its latest wave lacked direction, thus it could be characterized as a period of consolidation as a result of which another channel was formed.
Meanwhile, the Euro bounced off the senior channel last week and has since began to edge lower towards the bottom boundary of the intermediate pattern located circa 4.2050.
Technical indicators suggest that the pair could make a minor correction during the following day towards the support massive resistance cluster in the 4.2270/4.2350 area. Subsequently, the rate is expected to push for the intermediate channel, thus falling down to the aforementioned 4.2050 mark or the monthly S1 at 4.1920.
By and large, given the steepness of the senior channel, it is likely that the Euro respects the intermediate channel more and thus breaches the former within the following week.
Meanwhile, the Euro bounced off the senior channel last week and has since began to edge lower towards the bottom boundary of the intermediate pattern located circa 4.2050.
Technical indicators suggest that the pair could make a minor correction during the following day towards the support massive resistance cluster in the 4.2270/4.2350 area. Subsequently, the rate is expected to push for the intermediate channel, thus falling down to the aforementioned 4.2050 mark or the monthly S1 at 4.1920.
By and large, given the steepness of the senior channel, it is likely that the Euro respects the intermediate channel more and thus breaches the former within the following week.
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