How Will the Moldovan Leu Move Against the Euro? Chart Analysis.
We are in a crucial period for the Moldovan leu against the single European currency. The EUR/MDL exchange-rate chart is in an important zone, where it will be decided whether MDL starts a new period of depreciation.
When we want to keep our wealth in currency, it matters which currency we choose!
People often keep money at home or open a bank deposit in the currency that offers the highest bank interest. But a currency that promises 6% annual bank interest can depreciate by 10% in a year.
The Moldovan leu over 23 years against the euro
The general EUR/MDL chart (before 1999, the German mark replaces the euro) clearly shows that the Moldovan leu is in a stable depreciation trend. The channel of this trend is shown above, and we want to highlight that the chart is now in the support area of the rising trend for the fourth time. In graphical analysis of financial markets, this phenomenon indicates a high probability of an upward price rejection. And if that zone works, then over the next 2-4 years we may see a new rising wave on the EUR/MDL chart, meaning a 20% depreciation of the leu against the euro, up to the 24.50 quote.
4 free lessons about financial marketsMDL over the previous 8 years against EUR
If we analyze the image below, the EUR/MDL chart is divided into 2 phases: the first growth phase between 2012-2015 and the decline phase from 2016 to the present. And here is the most interesting part! This last decline phase (the red channel) has reached the global trend line described in the image above. In this region, the "red" trend paused and possibly even more... it is trying to break upward through the descending trend line...
The breakout will be confirmed if this week (or the following ones) finishes at a price no lower than 20.30 lei for one euro.
EUR/MDL performance over the last 15 months
In the daily chart image, we see that since September 2018 the EUR/MDL quote has fluctuated in a horizontal channel, specifically from the 19.10 price to 19.90. We draw strong attention to the fact that the chart is now breaking upward through this channel! We will watch how today, Thursday, and Friday close. If the upward breakout is confirmed, the 19.90 level will become a support zone that gives strength to the development of an uptrend, and eventually the 18.70 quote (the 2018 low) may never be seen again.
Here is the international online chart for EUR/MDL:
GET ACCESS to all currency-market charts
Free support and consultations
If you want to learn how to correctly analyze the quotes of currency pairs, or if you would like to receive a free financial consultation, you can contact us or schedule a meeting at our office in Chisinau:
Register for a free consultationIf you think this article may be useful to other people as well, please SHARE it on Facebook.
The information in this article is not and cannot be considered a recommendation to buy, sell, or hold any financial instrument. The chart analysis was created with the help of the websites investing.com and tradingview.com.
Risk warning: This article is for information and education only, reflects the situation as of its publication date and does not constitute investment advice, an offer or a recommendation to buy or sell any financial instrument. Trading leveraged instruments (Forex, CFDs) and crypto-assets carries a high risk of losing your capital. Past performance does not guarantee future results. Before investing, assess your objectives and risk tolerance and, if needed, consult a licensed adviser. Details: Disclaimer & Risk Warning.
Translated from the Romanian original with AI assistance.