EUR/CZK failed to overcome the upper limit of a multi month descending channel near 25.75 resulting in retraction of recent gains – it has recently drifted towards 25.35. A break below here would open up the lower band of the channel at 25.16, analysts at Société Générale report.
Pullback to linger while below 25.52
“An initial bounce is under way, however, holding below 25.52, the 38.2% retracement of recent down move, the pullback is expected to persist.”
“In case last week low near 25.35 breaks, there would be a risk of deeper down move towards the lower band of the channel at 25.16.”
