Patterns: EUR/PLN, EUR/CZK
|EUR/PLN 4H Chart: Two scenarios likely
Since the end of September, the EUR/PLN currency pair has been testing the psychological level at 4.5950.
It is likely that the exchange rate could gain support from the 55-, 100– and 200-period moving averages in the 4.5000/4.5320 range and trade upwards in the medium term. In this case the rate could target the 4.7000 level.
However, if the 4.5950 level holds, it is likely that a reversal south could occur, and the currency pair could re-test the psychological level at 4.4600.
EUR/CZK 4H Chart: Rising wedge pattern in sight
The EUR/CZK exchange rate has been trading upwards within a rising wedge pattern since the end of September.
From a theoretical perspective, it is likely that the currency pair could trade upwards within the given pattern within the following trading sessions. Then, a breakout south could follow.
Meanwhile, note that the exchange rate could gain support from the 55– and 100-period SMAs in the 27.20 area. Thus, some upside potential could prevail in the market, and the rate could reach the 28.00 level.
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