Polish Zloty Under The Pressure Again?

Today we have an unusual situation on our hands; we’ll be taking a closer at two exotic pairs which have made an impact in the market. Exotic instruments are not often highlighted, but this doesn’t mean they can’t offer great trading opportunities. Let’s get to it.

First, we’ve got the EURPLN which has made a few appearances in our market analysis sessions. Towards the end of February, we were bullish about this pair when the price was finishing the inverse head and shoulders pattern. The price indeed climbed significantly higher breaking all crucial horizontal resistance levels. It more recently bounced from its resistance level turning it into a support level (4.5).

The price had a chance to create a head and shoulders pattern but failed to break the neckline and instead played the triangle scenario and broke the upper line of this formation. Today the pair saw an upswing giving a new buy signal and headed into a positive sentiment.

The next pair is the USDPLN which has also been on the rise the past few weeks. Over the last few days, we saw a correction but now it seems that the correct has ended, that’s because we see a significant bounce on the 38,2% Fibonacci retracement level which was made with a small inverse head and shoulders pattern. As long as the price stays above the neckline and the 38,2% Fibo level, the sentiment will remain positive.

Let’s end this with a quick overview of the SP500; the index once again moved up to test the 38,3% Fibonacci level following a small bullish flag. It’s expected to play the role of a strong resistance again, at which point it can be a good occasion to open new short positions. If the resistance is broken and the bulls manage to get it to close the day above 2640 points, we’ll get a crucial mid-term buy signal.