The pace of infections is likely to accelerate in the near-term which may force the Polish government to take measures that would have negative implications for the economy. Economists at Rabobank see limited scope for a further retracement in EUR/PLN and forecast a rebound to 4.44. Key quotes “It is important to point out that EUR/PLN moves in the opposite direction to EUR/USD, which remains in a bullish momentum. However, the EUR rally does look stretched and when it finally runs out of steam, the downside pressure on EUR/PLN is likely to ease accordingly.” “A potential correction lower in EUR/USD could coincide with the Polish government announcing domestic restrictions to flatten the coronanvirus curve.” “The crucial support area at 4.40/38 may prove tough to clear if the market starts pricing in a much higher probability that the government will have to respond by reimposing restrictions. The scale of those restrictions will then determine to what extent the pace of recovery in economic activity may slow down and weather the odds are shifting more in favour of a U-shaped rather a V-shaped GDP growth in the coming quarters.” “Essentially, EUR/PLN faces the risk of a squeeze higher in the coming weeks. A rebound above the 4.44 pivot would modestly be positive for EUR/PLN. The 4.52/51 resistance area would have to be cleared to adopt a constructive view on EUR/PLN, but for that the outlook for Poland would have to deteriorate markedly.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US: Personal Income declines by 1.1% in June, Personal Spending grows by 5.6% FX Street 3 years The pace of infections is likely to accelerate in the near-term which may force the Polish government to take measures that would have negative implications for the economy. Economists at Rabobank see limited scope for a further retracement in EUR/PLN and forecast a rebound to 4.44. Key quotes “It is important to point out that EUR/PLN moves in the opposite direction to EUR/USD, which remains in a bullish momentum. However, the EUR rally does look stretched and when it finally runs out of steam, the downside pressure on EUR/PLN is likely to ease accordingly.” “A potential correction lower in EUR/USD… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.