Speculative Sentiment Positive as EUR/PLN Defends Support

Today, let’s examine Euro to Polish Zloty (EUR/PLN), a highly technical pair that has been confined to a sideways trend for most of 2024. The range is defined by two key horizontal levels, which have acted as consistent boundaries for the pair: a support level at 4.245, tested multiple times, and a resistance at 4.37, tested three times this year.

After bouncing off the resistance in November, the price is now testing the lower boundary of this range. The first contact with this level has resulted in a bounce, which is a positive sign for this pair. This reaction indicates that buyers are still defending the support, keeping the short-term speculative sentiment positive.

However, if the price closes a day below this critical support, it will serve as a strong sell signal, potentially opening the way for further declines. For now, though, the probability of such a breakdown remains limited, as the range continues to hold.

Source: https://www.axiory.com/analytics/technical-analysis/speculative-sentiment-positive-as-eur-pln-defends