EURPLN bounces off key support

By Tomasz Wisniewski|

Published: May 18 2023, 13:59 GMT+0

EURPLN bounces off key support


Once in a while, we analyse the situation on the EURPLN. The pair is probably not the first on your list but that doesn’t change the fact that it is moving really technically and is definitely worth watching.

The EURPLN suffered a huge drop in April and first half of May, which was technically caused by the bearish breakout from a huge symmetric triangle pattern (blue). The slide was impressive and two days ago reached a key horizontal support at the 4.48 (green) which had been a low since February. This was a tremendous place to initiate a take-profit action and the traders did not disappoint. The price is currently edging higher, creating a V-shaped reversal.

We still have some training ahead of us today and a whole day tomorrow, but if the EURPLN manages to close the week somewhere near the current levels, we will get a very strong reversal pattern. How deep can the bullish correction go? Well, my idea would be the 50% Fibo and resistance at 4.64 (purple). The chances of getting there are currently quite high but, of course, buyers would need quite a bit time to get there.