USD/PLN may rise 107 - 157 pips

Our pivot point stands at 3.9682.

Our preference

The upside prevails as long as 3.9682 is support.

Alternative scenario

The downside breakout of 3.9682 would call for 3.9598 and 3.9547.

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 trading above both its 20 and 50 period moving average (respectively at 3.9627 and 3.9559). Finally, the USD/PLN is trading above its upper Bollinger band (standing at 3.9748).

Supports and resistances

4.0041 **

3.9991 *

3.9940 **

3.9890

3.9783 last

3.9716

3.9682 **

3.9598 *

3.9547 **

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