EUR/PLN 1H Chart: Channel Down

For an extended period of time EUR/PLN has been attempting to rally beyond 4.37, but failed to do so, slipping beneath the 200-hour SMA and forming a channel down on a 1H chart. While the overall picture is bearish, we expect the decline to extend down to 4.2208-4.2136 in a day or two.

Rallies are not ruled out, Most likely they will be limited by the down-trend resistance line that currently is standing at 4.2554, together with the daily pivot point. The key level, however, is the 200-hour SMA at 4.3009 that merged with the daily R3.