From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with 5/15 minutes.
Currency pair EURPLN long time moves in a consolidation devoid of greater volatility and dynamics whether from demand or supply. The whole lasting since 2010 movement creates a ascending triangle formation and taking into account that we are now in area of its upper limit, in near future we can expect declines.
Looking on daily chart we see that although the market has not yet reached support at 4.5250 but same as it was in January this year there was a strong reaction of bears due to which we observed declines. From a technical point of view, the decline could reach even vicinity of 4.3675.
On H4 chart we can see that market since last Wednesday moves in a consolidation which upper limit is the level of momentum 50% Fibonacci correction of previous increases and could provide the right shoulder of the potential formation of Head & Shoulders
Breaking bottom of this formation could lead to declines to potential target level around 4.3360.
At H1 chart we can see that due to emergence of a strong supply around level of 4.4600 from few hours we see declines, which soon could reach and re-test the lower limit of consolidation.
Use analysis to invest in the Broker BDSwiss, where at the time of the creation of this analysis spread on a pair EURPLN was 7.6 pips.