Chart EUR/PLN Update: Sharp PLN-driven bounce from critical support
The anticipated break below critical support at the 4.2200 Fibonacci retracement has not been seen
| Levels | Imp | Comment | Levels | Imp | Comment | |||
| R4 | 4.2800 | * | break level | S1 | 4.2350 | * | congestion | |
| R3 | 4.2700 | * | break level | S2 | 4.2200 | ** | 50% ret of Feb-Apr rally | |
| R2 | 4.2600 | * | break level | S3 | 4.1975/00 | ** | 61.8% ret; cong | |
| R1 | 4.2500 | * | congestion | S4 | 4.1800 | * | congestion |
Asterisk denotes strength of level
13:05 GMT - The anticipated break below critical support at the 4.2200 Fibonacci retracement has not been seen, as consolidation gives way to a sharp PLN-driven bounce. The break back above 4.2350 has turned sentiment neutral, and put focus on congestion resistance at 4.2500. Unwinding oversold daily stochastics and the flattening bearish daily Tension Indicator highlight room for a test of here. But mixed weekly charts should limit any break in renewed consolidation beneath 4.2600. Meanwhile, a close below 4.2200 is needed to turn sentiment negative and complete a multi-month distribution top beneath the 4.3100 current year high of 16 April, as focus then turns to 4.1975/00.