USD/PLN 4H Chart: Channel Down

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.