EUR/PLN broke below a multi-month ascending trend line resulting in an extension of pullback that started at 4.7400 in November. Economists at Société Générale expect the pair to extend its slide towards 4.4580 and 4.4360 on a break under 4.50/4.48.

Break above late January peak of 4.6000 crucial for short-term rebound

“The pair is gradually dipping towards the interim support zone of 4.5000/4.4800 representing the low of last September and the lower limit of the channel drawn since 2020. This is a crucial level. If this gets violated, there would be a risk of a deeper downtrend towards projections of 4.4580 and 4.4360.”

“A break above late January peak of 4.6000 will be essential for short-term rebound.”