EUR/PLN 4H Chart: Channel Up

The common European currency is appreciating against the Polish Zloty in the short-term ascending channel. The pattern formed after the currency pair broke from a descending triangle in the upward direction. Thus, the current surge of the pair should be equal to the widest distance of the triangle. At the moment, the rate has just climbed to this height, which means that the existing pattern in about to be changed. This scenario is supported by the fact that before making a third confirmation from the upside, fluctuations of the rate began to narrow. Such movement indicates on formation of the rising wedge. Since the wedge is a reversal pattern, the breakout is expected to follow downwards.