A Close Look at EURPLN’s Critical Juncture

As Thursday unfolds, the markets are showing signs of a modest reversal. Indices are on the rise, commodities are ticking upward, but in today’s analysis, we turn our attention to a less commonly examined pair: the EURPLN (Euro to Polish Zloty). At this very moment, it is poised at a crucial level – the 4.48 resistance. Here’s the deep dive into what this key point could signify for the pair and how traders might position themselves in response.

Since April, the EURPLN has been on a sustained downward course. The descent was triggered when the price broke free from a symmetrical triangle pattern. This departure was significant, leading to a substantial drop that saw the price reach a local low at the end of July.

Since that low point in July, the pair has been tracing a corrective course, a sort of breather from its preceding plunge. This corrective phase has now brought EURPLN into direct confrontation with a significant resistance level at 4.48.

Here, we stand at a pivotal junction, and two primary scenarios are taking shape:

1. The Bullish Breakout: Should the price manage to break decisively above the 4.48 resistance, especially with a daily close above this critical level, this would generate a compelling buy signal. It could signify the initiation of a more extended recovery phase, marking the 4.48 level as a newfound support.
2. The Rejection and Retreat: Conversely, if the price falters at this resistance, turning back down and closing significantly below this level, this would issue a clear sell signal. In this scenario, the 4.48 level holds as a steadfast ceiling, and the primary downtrend that began in April would likely resume its course, potentially with renewed vigor.

For traders, vigilance is the word of the day. Watching for a clear close above or below this critical level will be essential in discerning the next likely move for this pair, setting the stage for either a bullish resurgence or a continuation of the prevailing bearish trend.

Source: https://www.axiory.com/analytics/technical-analysis/a-close-look-at-eurpln-s-critical-juncture