Chart EUR/PLN Update: Gains to remain limited
Cautious trade above strong support at the 4.1975 Fibonacci retracement and congestion around 4.2000 is giving way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
| R4 | 4.2600 | * | break level | S1 | 4.1975/00 | ** | 61.8% ret; cong | |
| R3 | 4.2500 | * | congestion | S2 | 4.1800 | * | congestion | |
| R2 | 4.2350 | * | congestion | S3 | 4.1700 | ** | 76.4% ret of Feb-Apr rally | |
| R1 | 4.2200 | * | congestion | S4 | 4.1600 | congestion |
Asterisk denotes strength of level
12:55 GMT - Cautious trade above strong support at the 4.1975 Fibonacci retracement and congestion around 4.2000 is giving way to a bounce, as oversold daily stochastics unwind and the bearish daily Tension Indicator flattens, with immediate focus on congestion resistance at 4.2200. Oversold weekly stochastics are also flattening, suggesting room for a test above here. But the bearish weekly Tension Indicator and deteriorating longer-term charts are expected to limit any break in renewed selling interest/consolidation beneath congestion around 4.2350. Following corrective trade, fresh losses are looked for. However, a close below 4.1975/00 is needed to add weight to sentiment and extend April losses initially to congestion around 4.1800.