Patterns: EUR/PLN, EUR/CZK

Dukascopy Bank Team Dukascopy Bank SA

EUR/PLN 1H Chart: Two scenarios likely

The Polish Zloty has been appreciating against the US Dollar for two weeks. This movement is bounded by a descending channel.

Currently, the currency pair is trading near the lower boundary of a senior ascending channel. If the senior channel holds, it is likely that a breakout from a junior channel occurs. However, this advance might not be immediate due to the resistance cluster formed by a combination of the 55-, 100-, 200-hour SMAs, the weekly and monthly PPs, as well the Fibonacci 38.20% retracement in the 4.2971/4.3106 range.

Otherwise, the pair could breach the senior channel and go downside to the Fibonacci 50.00% retracement at 4.2738.

EUR/CZK 1H Chart: Trades in falling wedge

The Czech Koruna has been appreciating against the Euro since the beginning of August after the pair reversed from the 2018 high at 26.14. This movement is bounded in a falling wedge.

As apparent on the chart, the exchange rate reversed from the lower pattern line at 25.43. From the theoretical point of view, it is likely that a surge towards the upper boundary of the wedge at 25.63 could happen within following trading sessions.

However, technical indicators suggest this advance might not be immediate. The pair could go down to the weekly R1 at 25.55 during next trading hours.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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