Ransquawk

EURPLN was moving in a downward trend from the end of January, whose low is around 4.13. However, after breaking the downward trend line extending from the highs of September last year, the pair got stuck in a consolidation.

The lower limit of this consolidation provides support at 4.13. Currently, however, the quotations are located near its upper band (4.19). As can be seen in the daily chart below, it was on this resistance that two bearish pin bars were formed in a row with pin bars indicating potential reversal.

Possible confirmation of the potential declines after the appearance of the above discussed pin bars can be found at the lower interval, in this case a 2-hour period. There, the short-term downward trend line running to the 19 th of February low was broken. It is currently being tested and if the price breaks the local support at 4.1816, an inflow of sell offers may occur.

If the above scenario is implemented, on the way to the lower consolidation limit at 4.13, bears will have to overcome local support close to 4.1630. Alternatively, the negation of two bear pin bars will open the way for increases towards 4.22.

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