USD/PLN 4H Chart: Channel Down

The American Dollar is depreciating against the Polish Zloty simultaneously in two descending channels. The junior inner channel formed after the currency pair bounced off from a combined resistance level set up by the senior pattern's upper trend-line and the 100-hour SMA. In the first half of Monday the rate is expected to approach the bottom edge of the junior channel, which is secured by the monthly S1 at 3.6636. Due to this additional support line, the pair most probably is going to make another rebound and surge to the weekly PP at 3.6889. Various technical indicators support this scenario, pointing out that the currency pair is oversold. In general, it is unlikely that the pair will manage to break from the channels to the top, as the northern side is additionally protected by the 55- and 100-period SMAs.