FxNews – The pair has recently experienced a significant downtrend, leading its price to drop as low as 4.31, breaching the 4.4 support level. This marks the lowest price point for the EURPLN since 2021. The current scenario is further corroborated by the monthly pivot aligning with the median line of the bearish flag pattern, reinforcing the prevailing bearish sentiment.
EURPLN Forecast – A Closer Look at the Downtrend
It’s insightful to delve into the 4-hour chart to understand the pair’s price movements better. Here, we observe the EURPLN currency pair nearing the 4.43 support level, with its price hovering just above the median line of the bearish flag at the time of writing. This positioning indicates a potential for the pair to surpass the pivot and approach the R1 resistance level at 4.359.
However, if the market price remains below the R1 level, the trend will likely maintain its bearish outlook, focusing on the S1 support set at 4.3. Analysts at FxNews recommend closely monitoring the pair’s price action and candlestick patterns near these critical pivots and R1 points. The emergence of specific candlestick formations, such as a doji, a long wick candle, or a bearish engulfing candlestick, could signal a favorable opportunity for shorting the EURPLN pair.
Conversely, should the pair cross the 4.3 threshold, it would challenge the current bearish perspective and potentially invalidate this scenario.
Signs of Revival in Poland’s Manufacturing PMI
Bloomberg—The Polish manufacturing sector is showing signs of recovery. The S&P Global Poland Manufacturing PMI climbed to 48.7 in November 2023, a notable improvement from 44.5 in the preceding month. This increase exceeded market forecasts by 45.3, marking the highest reading in 19 months. The rate of decline in new orders and production has eased, with some firms noting a revival in demand from European Union countries, the UK, and Ukraine.
Additionally, there’s a positive change in employment trends, with the slowest rate of job cuts since June. However, for the first time in seven months, there was an increase in suppliers’ delivery times. In terms of pricing, there was a rise in input charges for the first time in eight months, although output charges continued to fall. Encouragingly, manufacturers’ confidence has reached its highest point since February 2022, before the onset of Russia’s full-scale invasion.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
