USD/PLN 4h Chart: Broadening Wedge

USD/PLN has been trading in an ascending broadening wedge in force since early June. The pair was confined in a narrow range prior to providing three confirmations on both wedge boundaries. Ascending broadening wedge is primarily a continuation pattern, thus a breakout to the downside may be expected. However, technical oscillators suggest that the US Dollar may still make a minor U-turn prior to a move downwards. The price has recently crossed the 55-, 100– and 200-hour SMAs, thus adding to the bearish perspective. An immediate resistance is provided by the 100– and 200-hour SMAs circa 3.7600. Meanwhile, the pair is supported by the lower channel boundary and the weekly S2 at 3.7339 and 3.7154, respectively.