EUR/PLN has staged a pullback after facing resistance near the upper limit of a multi month channel at 4.7400 last month. Economists at Société Générale expect the pair to rebound towards 4.6460 as the 200-day moving average (DMA) at 4.57 holds.
200-DMA at 4.57 to act as first layer of support
“EUR/PLN is now drifting towards an ascending trend line drawn since June at 4.5700 which is also the 200-DMA. This is expected to act as first layer of support. Test of this level can result in a short-term rebound.”
“Holding above 4.5700, EUR/PLN is expected to bounce towards 4.6460, the 38.2% retracement of the pullback and 4.7050.”