Is EURPLN Poised for a Major Shift?

By Tomasz Wisniewski|

Published: November 28 2023, 06:25 GMT+0

Is EURPLN Poised for a Major Shift?


It’s time for a quick technical update on EURPLN, following up on our discussion from last week. Previously, we highlighted a hammer candle formation on the weekly chart, distinguished by its yellow color. This pattern occurred right at a crucial horizontal support level of 4.38 (blue) and along a long-term uptrend line (black). However, as this week unfolds, we’re witnessing a weakening Euro against a strengthening Polish Zloty, potentially undermining the hammer’s bullish implication and hinting at a bearish breakout instead.

Given that it’s only Tuesday, the week’s full story is yet to be told. We should keep an eye on how things progress, particularly towards the week’s close. A significant downturn by week’s end would solidify a robust long-term sell signal. Conversely, if the market rallies and forms another hammer, it could signal a strong buying opportunity. Dual hammers are often seen as highly reliable bullish indicators.