USD/PLN may rise 119 - 169 pips

Our pivot point stands at 3.9362.

Our preference

The upside prevails as long as 3.9362 is support.

Alternative scenario

The downside breakout of 3.9362 would call for 3.9278 and 3.9228.

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 3.9217 and 3.9290). Finally, the USD/PLN is trading above its upper Bollinger band (standing at 3.9428).

Supports and resistances

3.9741 **

3.9691 *

3.9641 **

3.9591

3.9472 last

3.9395

3.9362 **

3.9278 *

3.9228 **

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