Positive Sentiment in USD/PLN as Double Bottom Formation Drives Gains
18 October 2024
In the technical part, let's revisit the American Dollar to Polish Zloty, which I have analyzed from time to time, and as I always mention, it strictly follows technical analysis—and this case is no different. What we observe here is a clear double bottom formation, marked with a red rectangle. The price has broken the neckline of this pattern, represented by the yellow horizontal resistance, and since then, we've seen a significant rise.
The price encountered some resistance around the green downtrend line, but it eventually broke through that level as well, confirming a long-term buy signal for the pair. The breakout from both the neckline and the downtrend line indicates a continuation of the bullish trend. The sentiment remains positive as long as the price stays above the green support and the yellow support levels. This setup looks quite optimistic for the American Dollar to Polish Zloty in the long term.