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Momentum on CZK Remains Firm As Traders Keep Chasing Policy Divergence

CZECHIA
  • USDCZK continues to test new lows this week as momentum on CZK remains firm; the pair broke below its 21.50 support yesterday. Next level to watch on the downside stands at 21.31. On the topside, next resistance to watch above 21.50 stands at 21.695 (200DMA).
  • EURCZK ticks lower this morning after finding resistance at 24.50 yesterday; momentum on the pair has also remained bearish in the past month as traders keep chasing the strong policy divergence between CNB and ECB. ST key support to watch stands at 24.28, followed by 24. On the topside, next resistance to watch above 24.50 stands at 24.68.

Source: Bloomberg/MNI

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