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Economists at Société Générale analyze EUR/CZK technical outlook.
EUR/CZK has formed a series of higher peaks and troughs after carving out a low near 23.20 in April. It has evolved within a small base and is now challenging a multi month descending trend line.
Daily MACD is anchored within positive territory denoting prevalence of upward momentum.
Once a break above the upper limit of the base near 23.80 materializes, EUR/CZK is likely to extend the rebound towards March high of 24.10.
The 50-DMA near 23.50 is near term support.
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