Polish Zloty Remains Firmly Bullish As The USD Crumbles
Blackwell Global | Jul 27, 2017 02:27AM ET
Key Points:
- The PLN/USD has been powering higher over recent weeks
- Technically, the pair is well placed to rally further
- USD weakness will only help to spur the bulls into action
Just for something different, we are looking at the Polish zloty today as the currency has been making some solid gains on the greenback and it looks as though it could extend further still. Indeed, this exotic cross has been powering higher over the past few months – on par with even the Swiss franc’s solid performance.
From a technical perspective, it’s easy to see why further gains are expected for this highly bullish pair. As shown below, the EMA bias is in the most bullish configuration possible and in little danger of seeing a shift in momentum any time soon. Additionally, momentum indicators such as the ADX are certainly suggesting that a very strong trend is in play which means it would likely take a decent fundamental upset to slow the accent.
What’s more, whilst it is currently bearish, the parabolic SAR reading is on the cusp of inverting to bullish which could mean that we don’t see the pair cool off for some time. Instead, we could see yet another push higher before the PLN/USD decides to return to the downside of the channel. Of course, this largely makes sense as the pair hasn’t managed to fully test the upside constraint of the broader ascending channel since May.
If we do continue to see the pair advance, the zloty could eventually reach as high as the 0.2821 mark over the next few weeks. At this point, there is a very distinct chance that it will be highly oversold and in need of a slip back to support. Exactly how far it will stumble is not yet clear, nevertheless, it should be able to hold above the 0.2750 level without too much trouble.
Ultimately, the outlook is fairly good for the PLN/USD moving forward and we can expect to see it enjoy the market’s favour. This will especially be the case as the USD remains besieged by negative sentiment stemming from political turmoil in the US and recently refreshed concerns that the Fed cannot deliver on its long-touted rate hikes.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.