EUR/PLN 1H Chart: Symmetrical Triangle
EUR/PLN 1H Chart: Symmetrical Triangle
- The common European currency is trading against the Polish Zloty in a short-term symmetrical triangle.
- The pattern started to form right after the 1.5% appreciation of the Euro, which was triggered by announcement of the ECB Minimum Bid Rate two weeks ago.
- For the moment, the pattern already has four confirmation points, which means that it has reached maturity and might be broken in the nearest future.
- Most likely, the currency pair will leave the formation in the upward direction.
- Firstly, because the southern side is reliably protected by the 200-hour SMA, the monthly PP at 4.2457 as well as the weekly S1 at 4.2414.
- Secondly, because the triangle represents a body of the larger pennant pattern whose flagpole appeared because of the above fundamental event.
- In this sense, the rate is expected to surge approximately by 1.29%.
The slight appreciation of the common European currency has resulted in the formation of an ascending wedge.
On September 19, the pair reached a long-term resistance at 4.2958 and reversed to the downside. Subsequently, the same scenario occurred once again. This movement of the Euro demonstrates a minor consolidation period which is nevertheless slightly tended to the downside.
It is expected that the given pair pushes down to the lower wedge boundary this week; a possible range could be the 4.2780 mark where a strong support of the weekly PP, the 200-, 55– and 100-hour SMAs are located. This could strand the pair between this level and the aforementioned support for some time, as bulls or bears need to gather quite a lot of strength to pass trough either of this barrier.