© Dukascopy Bank SA
The US
Dollar is losing strength against the Polish Zloty in a short term descending
channel pattern. The pattern is a representation of the rates fall from the resistance
of a medium-term descending channel pattern. The rate is set to move to the
dominant pattern's lower trend line in the upcoming weeks. However, the pair
has proven to be highly affected by the Fibonacci retracement levels, which are
measured by connecting the 2016 high and low levels. The 23.60% Fibonacci
retracement level at 4.1418 has already hindered the pair from both sides, and
only the momentum provided by the short term descending channel's trend line
was enough to break through it. The pair is set to approach the 38.20% level at
4.0572 next.
© Dukascopy Bank SA