EUR/CZK to extend its fall from one year lows at 25.61 – Commerzbank
EUR/CZK trades in one-year lows as flirts with the November 2019 high at 25.63. In the view of Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, the pair is on course to reach the 25.42/40 area next.
See – EUR/CZK: Czech koruna to do well as CNB is set to hike rates – ING
Bearish while below 55-DMA at 26.02
“EUR/CZK slid to a one-year low at 25.61, to below the 25.54 February trough, with significant support at the 25.42/40 September 2018 and June 2019 lows being next in line. Much further down lie the February 2018 low at 25.12 and the February 2020 low at 24.77.”
“We will retain our medium-term bearish forecast while the cross remains below the late April high and the 55-day moving average as well as the six-month resistance line at 25.98/26.02. Further resistance comes in at the March 24 high at 26.35. More important resistance sits between the 26.44 March high and the 26.57 mid-November and December highs.”
“Only an unexpected daily chart close above the 26.57 high would make us change our forecast to a bullish one.”
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FXStreet Insights Team
FXStreet
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