USD/PLN Nears Key Breakout: Double Bottom Formation in Focus

In today’s technical analysis, let’s take a closer look at the American Dollar to Polish Zloty (USD/PLN) pair. This is an exotic but highly technical instrument, and occasionally, it presents us with compelling trading opportunities. Currently, the chart is showcasing a Double Bottom formation, highlighted within the orange rectangle. This pattern is nearing completion, as the price is testing the neckline, a critical horizontal resistance marked in yellow.

The yellow resistance has acted as a key support since the end of 2023, and its significance cannot be overstated. A breakout above the yellow resistance would signal a strong buy opportunity. Additionally, the chart shows a red downtrend line, another important level to watch. If the price manages to close above both the red downtrend line and the yellow resistance, it will provide an exceptionally strong signal to go long.

On the flip side, if the price fails to break these resistances and bounces off them, it could create a short-selling opportunity. However, the overall market sentiment suggests that the bullish scenario seems slightly more likely at this point. Keep a close watch on how the price interacts with these key levels.

Source: https://www.axiory.com/analytics/technical-analysis/usd-pln-nears-key-breakout-double-bottom-formation