April 25, 2024 13:25 GMT
HUF, PLN Reverse Gains Versus EUR Amid Greenback Recovery
CEE FX
The sharp recovery of the greenback following the US data has led to a reversal of fortunes for HUF and PLN, both of which have erased the majority of their prior intraday gains versus the euro. CZK, however, remains more resilient, highlighting the high beta of the former two currencies to swings in global risk sentiment. Technical updates below:
- Recent gains in EURHUF highlight a strengthening bullish theme and suggest that the corrective pullback between Mar 12 - Apr 5 is potentially over. A resumption of gains would open the key resistance and bull trigger at 399.75, the Mar 12 high. Attention is on initial resistance at 395.77, the Apr 2 high. On the downside, clearance of 388.34, the Apr 5 low, is required to reinstate a bearish theme.
- EURPLN has recently reversed higher from its April lows and the recovery accelerated on Apr 16. Last week’s gains resulted in a break of resistance at 4.3268, the Mar 20 high. The breach highlights a short-term reversal and signals scope for a climb towards the 4.40 handle. Initial support lies at 4.3092, the 20-day EMA. Key support lies at 4.2527, the Apr 9 low.
- For EURCZK, bears will look for clean breach of the Mar 18 low of 25.087, which could open the round figure of 25.000. On the topside, a clearance of the 50-DMA, intersecting today at 25.310, could instead expose Feb 15 high of 25.519.
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