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CZK: Rate Surges To One-Year Highs, Breaking Out Of Recent Range

PLN

PLN/CZK has added 494 pips thus far and last changes hands at CZK5.3406, with gains facilitated by comments from CNB's Tomas Holub, who said that Czech rate cuts could start in 1H2024. The rate now trades at its highest levels in a year.

  • Today's upswing follows a period of consolidation since mid-May as bulls are getting the upper hand again. The move coincides with the RSI crossing the 70 threshold to enter overbought territory.
  • For bulls, the next key technical targets are provided by Jun 8, 2022 high of CZK5.4225 and May 11, 2022 high of CZK5.4534. Conversely, bears look for a return under May 24 high of CZK5.2914 before taking aim at May 26 low of CZK5.2038.

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