USD/PLN is trading in two channels which are guiding its movement. During the past six weeks, the Greenback has been trading sideways in the 3.3085/3.4330 area. Its latest movement upwards, however, was disrupted by the senior channel near the 3.40 mark, thus sending the US Dollar for a minor period of decline.
It is likely that this dominant pattern, reinforced by the 55– and 100-hour SMAs, the 23.60% Fibo retracement and the monthly PP, pressures the rate even lower during the following sessions. A possible downside target is the 3.36 level where the 200-hour SMA is located.
However, the pair should eventually gather enough bullish momentum to approach the upper boundary of the junior channel near 3.4340.