The single European currency has depreciated massively against the Polish Zloty since the beginning of July. The currency pair started the decline after it reached a one –year high level at the 4.42 mark. The exchange rate has since lost 3.59% of its value since July 4.
During the one month long of the Euro weaken, the pair breached a significant support level within this period. Namely, the 55-, 100-, and 200-hour SMAs. The pair has moved closer to the bottom border of a dominant ascending channel pattern and could be set for a breakout.
In the meantime, it is expected that the EUR/PLN pair to make a brief retracement toward the 55-hour simple moving average during the following trading session.
