USD/PLN may rise 107 - 157 pips

3.9271 is our pivot point.

Our preference

The upside prevails as long as 3.9271 is support.

Alternative scenario

The downside breakout of 3.9271 would call for 3.9187 and 3.9138.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 3.9275 and 3.9248). Finally, the USD/PLN has crossed above its upper Bollinger band (3.9356).

Supports and resistances

3.9628 **

3.9578 *

3.9528 **

3.9478

3.9371 last

3.9304

3.9271 **

3.9187 *

3.9138 **

Number of asterisks represents the strength of support and resistance levels.