Profit-Taking Zone: USD/PLN Tests Yearly Highs
12 November 2024
The American dollar to Polish Zloty (USD/PLN) is currently at a pivotal technical level, a scenario familiar to those who have followed our previous analyses of this exotic yet reliable currency pair. The recent double bottom formation, highlighted in green, was instrumental in propelling the price above a significant yellow horizontal resistance. This breakthrough fueled a notable upswing, briefly interrupted by a small corrective move. Now, USD/PLN is achieving new highs not seen since April and June, which are marked with an orange resistance zone on the chart.
This area serves as a critical juncture where traders may consider securing profits from the current bullish momentum. If the price manages to break above this orange resistance convincingly, it would generate a strong long-term buy signal, reinforcing the positive sentiment for the pair. However, should the price struggle and retreat from this level, it could indicate consolidation or a potential pause in the upward trend. The next moves will be decisive, and traders should watch closely to determine if the breakout materializes or if sellers begin to exert pressure at this crucial resistance.