Patterns: USD/ZAR USD/PLN

Dukascopy Bank Team Dukascopy Bank SA

USD/ZAR 1H Chart: Bulls could prevail

The USD/ZAR exchange rate reversed north from the lower boundary of the descending triangle pattern at 14.52 at the beginning of December.

From a theoretical perspective, it is likely that some upside potential could prevail in the market in the medium term, as the currency pair should target the upper pattern line located circa 15.15.

However, note that the expected advance might not be immediate, as the exchange rate should surpass the resistance levels formed by the monthly PP and R1, located at 14.82 and 15.04 respectively.

USD/PLN 1H Chart: Downside potential could prevail

The USD/PLN currency pair has been trading within the head and shoulders pattern since the beginning of November (4H time-frame chart). As apparent on the chart, the second shoulder is being formed.

From a theoretical point of view, it is likely that some downside potential could prevail in the market in the nearest future. In this case the exchange rate could target the psychological level at 3.8200.

However, note that the expected decline might not be immediate, as the currency pair is supported by the 55– and 100-hour moving averages, currently located circa 3.8650. Also, it is unlikely that bulls could prevail, and the pair could exceed the monthly R1 at 3.9680.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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