USD/PLN 1H Chart: Channel Down
USD/PLN 1H Chart: Channel Down
Comment: A descending channel led USD/PLN away from two-month highs of 4.0965 and has stuck around since, suggesting that bears are likely to extend the gains if the current tests of the upper boundary are unsuccessful. There is, however, quite a chance that the pair might break out of the pattern immediately and we will look for it to start a steep rally after the area is corrected. There are several deviations of the channel trend-lines, but most of them show that the area has been surpassed already and that 3.9315 could become the next target. The boundary area is strengthened by a cloud resistance and could therefore require a longer retracement. Immediate support, however, lies at 3.9063 and will come into play if the pair starts its track to 3.8493, the bottom trend-line.
USD/SGD 1H Chart: Channel Down
Comment: After USD/SGD broke the neckline of a head and shoulders formation and confirmed the downtrend by sketching a bearish channel on the daily chart, another one emerged on the hourly chart to serve the purpose of leading the pair to the lower trend-line at 1.3925. The rate has already completed the motion and slightly broken the channel to the upside, and we will look for it to exit it completely in a motion targeting the top of the senior channel around 1.4144. Immediate resistance lies at 1.3982, but the area should not hold strong against the surging motion. The retracement against the broken channel trend-line is likely completed already, as the pair has touched the cloud support that surrounds the area.
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Dukascopy Bank Team
Dukascopy Bank SA
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