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