© Dukascopy Bank SA
During this week USD/PLN has been exhibiting propensity to decline, being pressured by the long-term moving average from above. As a result, the currency pair formed a bearish channel, which is now more than 200 bars in length.
Right now the exchange rate is moving away from the lower boundary of the pattern at 3.0796, which is reinforced by the daily S1 level, towards the upper boundary that creates formidable resistance at 3.0993 together with the daily R1 and the 200-hour SMA. And while this area is expected to prompt a sell-off, 73% of the SWFX market participants are holding long positions on the pair at the moment.
© Dukascopy Bank SA