The Polish Zloty is an interesting speculative currency for traders because it serves as a barometer for geo-political sentiment between Europe and Russia, and because it also reflects the dynamic nature of emerging economies which are part of the European Union.
At the height of fallout from via economic worries about Coronavirus, the PLN lost value and went to highs near 4.3000. However, in the past two and half months, the Polish Zloty has fought back and shown an ability to return to consistently pester and break through support levels. The gains made by the Polish Zloty have been accomplished with a solid trend the past month.
Important support short term for the USD/PLN appears to be 4.0000 and resistance looks to be psychologically strong near 3.9000. Early June trading for the PLN has been strong and the USD/PLN has seen its bear trend gain momentum. Speculators eyeing technical charts will certainly notice that not only have mid-March values been approached, but a test of mid-February levels is taking place right now.
Short term the Polish Zloty has repeatedly challenged support levels and traders may believe this trend should be tested more. The 3.9000 level looks to be an important inflection point, meaning traders will eye this juncture with anticipation. If the 3.9000 support level is broken speculators may aim for a target around 3.8500 next. However, traders should note a reversal may develop if USD/PLN traders believe the currency pair has been sold too much.
There appears to be a battle of range in the USD/PLN developing. Traders will put a lot of emphasis on the 4.0000 value for the Polish Zloty versus the US Dollar. If the PLN can maintain its stronger trend versus the US Dollar and consistently trade below the 4.000 juncture it may begin to set the tone for further selling of the US Dollar against the Polish Zloty. Meaning the value of the PLN may continue to test important support levels. Additional signs of vulnerable could cause more speculators to aim for marks near 3.8000 for the Polish Zloty.
Polish Zloty Short Term Outlook:
Current Resistance: 4.000
Current Support: 3.9000
High Target: 4.1000
Low Target: 3.8000
