EUR/PLN 1H Chart: Channel Down

Starting from Mar 14 the single European currency has been underperforming relative to the Polish Zloty. Now, considering that EUR/PLN has been trading within the boundaries of the bearish channel, the tendency is likely to persist. In this case the down-trend resistance line at 4.2062 should stay intact and push EUR/PLN towards the support at 4.1816. The bearish sentiment is also popular among the SWFX market participants, since 74% of all open positions on the pair are short. Nevertheless, it must be noted that on the hourly and daily charts the technical studies are giving strong ‘buy' signals, meaning the monthly pivot point and the 200-hour SMA may still come into play.