USD/PLN 4H Chart: Channel Down

Yesterday the US Dollar accelerated its depreciation tendency versus the Polish Zloty, as this cross penetrated an important demand cluster between 3.89 and 3.90. Here the bears managed to eliminate the weekly and monthly S1s that are now helping the pair in prolonging the leg down. Eventually we expect the 3.78 mark to be reached, as this is represented by the green trend-line of the channel down pattern and the second monthly support. Following that it is reliably to expect a recovery of the Greenback in the direction of 3.94, where the pair is going to meet the upper edge of the pattern along with 55/100-period SMAs. To back  this view, USD is still heavily oversold (73% short) in the SWFX market.