The pair has discontinued its uptrend (RSI = 61.957, MACD = 0.014, Highs/Lows = 0.0151) this week having been rejected near the 4.4000 1D Resistance. This creates ideal conditions for a reversal towards the 4.31460 1D Support, essentially aiming to trade within a Rectangle pattern. We are short on this formation with 4.33200 - 4.31460 as the Target Zone.
Trading these odd pairings can be tough but with the ECB set to destroy the value of the Euro further in about a week and the algo triggering a short signal, might be worth a small play.
Volume is starting to pick up, and momentum to the downside has plenty of room to run even if it's flattening out a bit today.
* Nice reversal candle in 1D
* NO surprise that EUR is in almost recession.
* No surprise that East Europe and Poland is doing well
* Many technical indicators showing good opportunity.
* Very good R:R
* Politically Poland isnt the best friend with Europe union
* Same as always - Trade wars
Today is a holiday in the United States – July 4th Independence Day and considering this the market is thin and calm.
We will analyze EUR/PLN
1DTF shows us a lot of consolidation, basically since about July of last year. We can observe a local dip down for the pair that started on May 22nd and this downtrend price reached May 2018 lows on July 1st.