Key Supports in Play for Polish Zloty Against Dollar

By Tomasz Wisniewski|

Published: December 01 2023, 06:34 GMT+0

Key Supports in Play for Polish Zloty Against Dollar


The current technical setup of the Polish Zloty against the American Dollar (USD/PLN) presents a noteworthy trading opportunity, especially when observed on the weekly chart. The formation of a hammer candlestick pattern, highlighted in green, is particularly significant due to its placement at critical support levels.

This hammer formation is not an isolated signal but gains relevance because it coincides with a key horizontal support at 3.93 (marked in orange) and a vital dynamic support line. This line connects the lows from May 2021 and July 2023, forming an upper black line on the chart. The confluence of these supports with the hammer pattern enhances the likelihood of a reliable trading signal.

Should the price rebound above the black dynamic support line, it would potentially indicate a shift towards a bullish momentum, validating a short to mid-term long (buy) position. Conversely, if the price were to break below the orange horizontal support line, it would suggest bearish dominance, thereby providing a signal to initiate a short (sell) position.

The decision to trade will hinge on the price action in relation to these technical indicators, making the USD/PLN pair one to watch closely in the coming daysSource: