In today’s technical analysis part, we are discussing an instrument that might be considered exotic but still moves very technically. In addition, you can surely trade it on our platform - the instrument is Euro to Polish Zloty – EUR/PLN.
EUR/PLN is currently in a key place where many traders will make a decision influencing the next few weeks of trading. A lot is at stake depending on these decisions. EUR/PLN is currently bouncing off a combination of two supports. The first one is the horizontal one on the 4.7 - a local top since the end of December.
In addition, you can spot the 38,2% Fibonacci here, which can be very often considered a key support. Last but not least, we have a mid-term up trendline connecting higher tops since the end of December. In other words, the price is currently flirting with ultimate support!
As a result, EURPLN bouncing off this area with a nice bullish candle would be an amazing buying opportunity with a target of 4.75 - the highs from the previous week. On the other hand, EURPLN closing a day below 4.7 would be a definite sell signal with a potential target of 4.63. As for now, with today’s bounce, the first option seems slightly more probable.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.