USD/PLN may rise 121 - 172 pips

Our pivot point is at 4.0255.

Our preference

The upside prevails as long as 4.0255 is support.

Alternative scenario

Below 4.0255, expect 4.0169 and 4.0118.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 4.0186 and 4.0205). Finally, the USD/PLN has crossed above its upper Bollinger band (4.0341).

Supports and resistances

4.0648 **

4.0597 *

4.0546 **

4.0495

4.0374 last

4.0288

4.0255 **

4.0169 *

4.0118 **

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