Forex Market: EUR/PLN daily trading forecast

Friday’s trade saw EUR/PLN within the range of 4.2272-4.1970. The pair closed at 4.2268, adding 0.29% on a daily basis.

At 7:40 GMT today EUR/PLN was down 0.09% for the day to trade at 4.2243, having ranged between 4.2216 – 4.2274.

Fundamental view

Eurozone

Markit Economics is expected to report that manufacturing activity in the Eurozone expanded in October at a faster pace compared to a month earlier, with the respective Manufacturing PMI projected to confirm a preliminary reading of 50.7 released on October 23rd. Septembers figure stood at 50.3.

Factory output in Germany is expected to have rebounded in October after the respective Manufacturing PMI fell below the level 50 threshold in September for the first time since June 2013. Octobers figure is expected to register at 51.8, confirming the preliminary reading and rebounding from 49.9 a month earlier.

Elsewhere in Europe, manufacturing activity in France probably contracted for the sixth consecutive month. Frances manufacturing Purchasing Managers Index will probably come in at 47.3, same as the flash PMI, further slowing down from Septembers final value of 48.8.

Italys factory output likely expanded at the same pace as in September, 50.7, after it contracted in August. Spain is expected to be the best performer among the major EU economies, with its manufacturing PMI projected to come in at 52.3 from 52.6 in September, which would be the sectors 11th straight monthly growth.

Outside the Eurozone, Britain will likely report a further slowdown in its factory output, continuing a recent trend, but still it would be the 18th consecutive monthly expansion. The reading is projected to come in at 51.2, compared to 51.6 in September.

Poland

Markit Economics will likely report that Polands manufacturing activity contracted for the fourth consecutive month in October, albeit at a minor pace. Polands manufacturing PMI is anticipated to register at 49.9, compared to 49.5 a month earlier.

Daily pivots

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 4.2170. In case EUR/PLN manages to breach the first resistance level at 4.2370, it may continue up to test 4.2472. In case the second key resistance is broken, the pair will probably attempt to advance 4.2672.

If EUR/PLN manages to breach the first key support at 4.2068, it might continue to slide and test 4.1868. With this second key support broken, the movement to the downside will probably continue to 4.1766.

The mid-Pivot levels for today are as follows: M1 – 4.1817, M2 – 4.1968, M3 – 4.2119, M4 – 4.2270, M5 – 4.2421, M6 – 4.2572.

In weekly terms, the central pivot point is at 4.2209. The three key resistance levels are as follows: R1 – 4.2448, R2 – 4.2628, R3 – 4.2867. The three key support levels are: S1 – 4.2029, S2 – 4.1790, S3 – 4.1610.