Three weeks ago, the EUR/PLN pair briefly overcame 4.5993/4.6344 to reach 4.6460 before topping out. Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, recommends selling into any potential bounce around the 4.5500 mark with a stop at 4.6465.
Key quotes
“EUR/PLN has been trading around the 200-day moving average at 4.4715 for the past week or so and has as yet to reach the October low at 4.4552. Once fallen through the 2020 uptrend line at 4.4475 will be under the spotlight. Around it, the currency pair may stabilise for a day or two. Further down sit the June and August lows at 4.3814/4.3753.”
“Minor resistance can still be seen along the 55-day moving average at 4.5124. Further minor resistance can be found at the 4.5525 October 21 low and still further resistance at the 4.5759 May high as well as at the 4.5978 September peak. Above it, key resistance remains to be seen between the 2011 and March 2020 highs at 4.5993/4.6344 and the October high at 4.6460, a level last seen in April 2009.”
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