1. Exness News
  2. Market Analysis
  3. Interday technical analysis of EURPLN
Market Analysis

Interday technical analysis of EURPLN

June 19, 2019
BY Michael Stark

The four-hour chart of the euro against the zloty (EURPLN) shows us a clear downtrend. However, momentum has slowed since last week, and there are some indications that price might move up from here. The most important support seems to be the area of 4.247. There is no strong high resistance at present on this timeframe, but the area of 4.30 might be a barrier to upward movement in the further future.

Technical indicators on EURPLN H4

Moving averages are somewhat mixed on this timeframe. The faster MAs (20 from Bands and 50) suggest a buy signal, with price having moved fairly strong above these today. The 20 SMA is ready to golden cross the slower 50-period SMA. However, price remains below the 100 and 200-period moving averages. It’s possible that the 100-period SMA might function as resistance over the next day or so in the area of 4.267. This would probably not be a very strong area, though. The 200 SMA might be more significant as resistance.

Although the slow stochastic (15, 5, 5) is neutral at the time of writing, it seems to support the picture of an incipient upward movement. Price failed yesterday to follow up on a crossover barely within overbought. Bands (20, 0, 2) have contracted somewhat, so the current candle’s fairly big gains probably do not suggest a breakout upward. MACD though has extended to the upside: the histogram is in positive territory while the signal line remains close to zero.

Price action and Fibonacci

Price action on this timeframe suggests that an upward movement might be favorable. Relatively long tails in two candles this week indicate that price is in an area of demand. The current period could form into an upward engulfing pattern; completion of this candle would provide confirmation.

Fibonacci here is based on the latest downward movement on the daily chart. The 23.6% retracement area seems to be an area of resistance that price is currently testing. A rejection downward here and daily close below 4.26 could lead to a retest of EURPLN’s latest low around 4.267.

Interday technical analysis EURPLN: summary

Technical analysis of EURPLN H4 suggests a buy signal. However, traders should monitor slow stochastics in combination with Bollinger Bands for the possibility of overbought conditions. Equally, central banks and data points are very important in the rest of the week.

Join Exness to trade one of the widest ranges of rare European pairs!


Disclaimer: the publication of analysis is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience or current financial situation. Analysis is not prepared in accordance with legal requirements promoting independent investment research and Exness is not subject to any prohibition on dealing before the release of analytics. Readers should consider the possibility that they might incur losses. Exness is not liable for any losses incurred due to the use of analysis.
Risk warning: CFDs are leveraged products. Trading them carries a high level of risk, so it is not appropriate for all investors. The value of investments can both increase and decrease and an investor might lose all of their invested capital. Under no circumstances shall the Company have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from or relating to any transactions in CFDs. © 2008—2019, Exness
alternate text for image
Confident in your trading skills? Open an account and start trading with Exness