EURPLN Dives Below Key Psychological Support in Technical Tumble
12 March 2024
In today’s technical spotlight, we turn our attention to EURPLN, an instrument that's showcasing significant technical moves. As we've observed since the outset of February, EURPLN was charting its course within a descending triangle pattern. This formation, highlighted by a steadfast yellow horizontal support and a descending green trendline, signaled mounting pressure on a crucial support level.
The focal point of this analysis is the 4.3 mark, which, up until recently, acted as a psychological bastion for the pair. However, the persistence of sellers paid off as we witnessed a decisive breach of this support in yesterday's trading session. This breakdown under the yellow line wasn't just a minor dip but a clear-cut escape to the downside, opening a new chapter for EURPLN.
This development translates into an unambiguous sell signal for EURPLN. The rule of thumb in such scenarios dictates that as long as the price remains subdued below what is now a pivotal resistance – the former yellow support zone – the bearish outlook holds. This breach not only confirms the descending triangle’s predictive power but also sets a bearish tone for the near future.
In wrapping up this analysis, it's imperative to note that a reversal back above the yellow line would challenge this bearish narrative, potentially indicating false breakout dynamics. However, the current momentum suggests that bears have the upper hand, and the sell signal remains robust under the shadow of the broken support.