USD/PLN had been trading in a descending channel in force since mid-November, 2016. After breaching this pattern last week, the Greenback retraced from its upper boundary early on Monday.
Thus, the dominant pattern now is an ascending channel which was formed mid-July. The rate’s trading range within this pattern has diminished, as it has failed to touch the bottom channel boundary on two separate occasions.
From theoretical point of view, the breakout from the senior channel should be followed by a surge. This is likewise supported by the pair’s upward-sloping movement in the junior channel.
The rate is supported by the 100– and 200-hour SMAs, the weekly and monthly PP and the weekly S1 in the 3.64/3.60 territory.
In general, it is likely that one of these levels pressures the US Dollar for a reversal, thus paving the way for a surge in the medium-term.