Patterns: USD/PLN USD/ZAR
|USD/PLN 1H Chart: Medium-term channel in sight
The US Dollar has been depreciating against the Polish Zloty since the beginning of December. This movement has been bounded within the medium-term descending channel.
From a theoretical point of view, it is likely that some downside potential could prevail in the market, as the USD/PLN exchange rate should target the lower channel line located in the 3.7200/3.7600 area. The general direction could also remain south in the medium term.
However, note that the exchange rate is supported by the 55- and 100-period SMAs (4H time-frame chart) in the 3.8000 area. Thus, if the given channel does not hold, bulls could prevail in the market in the nearest future. In this case the rate could face the resistance of the Fibo 23.60% at 3.8540.
USD/ZAR 1H Chart: Two scenarios likely
The US Dollar has been depreciating against the South African Rand since the beginning of January. This movement has been bounded within the medium-term descending channel.
Currently, the USD/ZAR exchange rate is testing the upper channel line. Note that the rate is supported by the 55-, 100- and 200-hour moving averages. Thus, it is likely that some upside potential could prevail in the market. In this case the rate could face the resistance level - the Fibo 23.60% at 14.67.
If the given channel holds, a reversal south could occur in the nearest future. Also, it is likely that bears could prevail in the market in the medium term, as the currency pair could continue to trade within the given channel.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.