EURPLN's Battle with the 4.48 Resistance
29 June 2023
The EURPLN currency pair's technical movement has been quite systematic in the past few months. The primary pattern has been a symmetrical triangle, delineated by blue lines. In mid-April, the pair breached the triangle's lower line, triggering a robust sell signal.
Following this, the price continued to drop until June 23rd, when a bullish correction took place. This correction lasted until yesterday, during which the price climbed and tested two resistance levels - the first downtrend line (depicted in red), and a key horizontal resistance at 4.48 (marked in green). The price's bounce off these resistances signals a bearish trend, implying a strong sell signal as long as we remain below the green line.
Conversely, if the price climbs back above the green line and closes above it, this would constitute an impressive buy signal. This is because such a move would suggest that the previous downside breakout (marked in yellow) was a false breakout, typically leading to a signal in the opposite direction. However, as we're still below the green resistance, this scenario remains largely speculative for now.