EUR/PLN finds support around 4.42 post-NBP

The Polish Zloty is sharply higher vs. its European peer today, dragging EUR/PLN to test lows in the 4.4200 area.

EUR/PLN weaker on NBP decision

The upbeat momentum around PLN has picked up extra pace after the Monetary Policy Council of the Polish central bank decided to leave unchanged its Reference Rate at 1.5%, the Deposit Rate at 0.50% and the Rediscount Rate at 1.75%, broadly in line with market expectations.

The EM cross has retreated to multi-day lows in the boundaries of the 4.42 area in the wake of the decision, managing to regain some pips soon afterwards although keeping intact the bearish note during the week.

EUR/PLN levels to consider

At the moment the cross is down 0.60% at 4.4284 facing the next support at 4.4197 (low Dec.7) followed by 4.3989 (low Nov.29) and finally 4.3515 (200-day sma). On the other hand, a breakout of 4.4686 (high Dec.7) would aim for 4.5098 (high Dec.6) and then 4.5391 (high Jun.24).