USD/PLN 4H Chart: Falling Wedge
|GBP/AUD 4H Chart: Channel Down
Comment: The British Pound is trading against the Australian Dollar in the short term descending channel. The pattern formed in the result of the currency rate’s break through the bottom trend line of the preceding ascending channel after the Pound’s appreciation amid the release of data on the construction and services PMI. The traders should watch carefully this pair, as the gradually narrowing fluctuations indicate on formation of the symmetrical triangle. Accordingly, if the breakout occurs in the downward direction, the 23.6% Fibonacci retracement level of the 2016 high and low levels at 1.7096 most likely will be able to constrain the fall. However, if the breakout occurs in the upward direction, there will be no resistance levels that could keep the rate within the channel.
USD/PLN 4H Chart: Falling Wedge
Comment: The American Dollar is trading against the Polish Zloty simultaneously in the two descending channels. The junior channel represents a rebound of the currency exchange rate from the bottom edge of the dominant channel, which was supported by the monthly S2 at 3.7601. However, narrowing fluctuations of the pair on this trading week suggest that this pattern will not sustain for long and that the pair will return within the boundaries of the senior channel. More specifically, formation of the falling wedge, whose lower lows are supported by the weekly S1 at 3.7073, allows to assume that the breakout will occur in the upward direction soon.
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