Forex Market: EUR/PLN daily trading forecast

October 8, 2014 7:19 am

Yesterday’s trade saw EUR/PLN within the range of 4.1903-4.1708. The pair closed at 4.1836, adding 0.04% on a daily basis.

At 7:07 GMT today EUR/PLN was up 0.05% for the day to trade at 4.187, having ranged between 4.1834 and 4.1884.

Fundamental view

Eurozone

Spain’s statistics agency (Instituto Nacional de Estadistica) reported that the country’s industrial production expanded at an annualized 0.6% in August, following an upward-revised 0.9% growth in the previous month. Analysts had expected Spain’s industrial output to have grown by 1.4%.

Yesterday, Destatis reported that Germany’s industrial production contracted by 4% in August, the most since 2009, in the latest sign of deteriorating economic conditions in the leading EU economy, and the Eurozone as a whole. This comes after a downward-revised 1.6% expansion in July, while analysts had projected a moderate 1.5% decline in industrial output.

Poland rate decision

The National Bank of Poland (Narodowy Bank Polski) Monetary Policy Committee will decide on the country’s benchmark interest rate, due at 12:10 GMT. According to analysts’ preliminary estimates, the central bank is set to lower borrowing costs to 2.25% from 2.5%, the first cut since June 2013. Generally speaking, a higher-than-expected reading is seen as positive for the national currency, and vice versa.

Technical view

eur-pln-08.10

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 4.1816. In case EUR/PLN manages to breach the first resistance level at 4.1923, it will probably continue up to test 4.2011. In case the second key resistance is broken, the pair will probably attempt to advance to 4.2118.

If EUR/PLN manages to breach the first key support at 4.1728, it will probably continue to slide and test 4.1621. With this second key support broken, the movement to the downside will probably continue to 4.1533.

The mid-Pivot levels for today are as follows: M1 – 4.1577, M2 – 4.1675, M3 – 4.1772, M4 – 4.1870, M5 – 4.1967, M6 – 4.2065.

Where to Trade

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