"AUD/PLN Technical Analysis – Potential Sell Setup (March 26, 20Sell Zone (Purple Area)
This area marks a strong resistance level, where price is expected to reverse downward.
Price has entered this zone, which might indicate a potential short-selling opportunity.
Stop Loss (Above Sell Zone)
The stop-loss level is set at 2.45119, just above the resistance zone.
This protects against a breakout if the price continues upward instead of reversing.
Entry Confirmation
Price action shows a sharp upward movement into the resistance area.
If price starts rejecting this zone (e.g., bearish candlestick patterns like pin bars or engulfing candles), it could confirm a sell entry.
Target Point (Blue Line at 2.42868)
The take-profit level is set at 2.42868, suggesting a downward move if price reverses.
This area might act as the next support zone.
Exponential Moving Averages (EMAs)
30 EMA (Red Line): 2.43595 (Short-term trend indicator).
200 EMA (Blue Line): 2.43464 (Long-term trend indicator).
Price is currently above both EMAs, which suggests a bullish trend, but the resistance zone might trigger a reversal.
Trading Strategy Suggestion
✅ Bearish Setup: Look for rejection signals in the sell zone before entering a short trade.
✅ Risk-Reward Ratio: The stop-loss is tight compared to the potential profit target, making it a favorable setup.
✅ Confirmation Needed: A clear bearish signal (e.g., a strong rejection candle) can increase trade confidence.
