USD/PLN may rise 137 - 188 pips

4.0546 is our pivot point.

Our preference

The upside prevails as long as 4.0546 is support.

Alternative scenario

Below 4.0546, expect 4.0460 and 4.0408.

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 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 4.0496 and 4.0398). Finally, the USD/PLN is trading above its upper Bollinger band (standing at 4.0616).

Supports and resistances

4.0945 **

4.0894 *

4.0842 **

4.0791

4.0654 last

4.0580

4.0546 **

4.0460 *

4.0408 **

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