USDPLN spent last month in a consolidation and Wednesday’s FOMC statement regarding rate hike in USA helped to break it down. About sell price action signals on the resistance and pin bars and engulfing bar I wrote earlier, however for a particular move we had to wait patiently.
Currently, pair is moving again to key support which is located at level 3.98. What is important it intersects with support provided by the diagonal bullish trend line carried from the lows from April 2014-th year.
In the above mentioned place can be expected reaction from demand. If there is a rebound, an important resistance provides lower limit of the previous consolidation between 4.0360 – 4.0450 and the downtrend line, which extends from the highs from December 2016.
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Alternatively, breaking support levels at 3.98 opens way for further declines, where the key support level is visible in the vicinity of 3.88.
The above analysis was carried out on the account with a broker XM, which offers $30 to start!