The US Dollar recently reached the lower trend line of a long term descending channel against the Polish currency. As a result the pair has already formed a short term ascending channel pattern.
However, the channel has met with fierce resistance in the form of the monthly S1 at the 3.3760 mark and the 38.20% Fibonacci retracement level, which is located just below it at the 3.3750 mark.
Due to that reason this isn’t a set up where one can simply enter. Instead a retail trader should look for the moment, when the mentioned resistance is finally passed. When that occurs, most likely a break out to the upside will occur.
However, the channel has met with fierce resistance in the form of the monthly S1 at the 3.3760 mark and the 38.20% Fibonacci retracement level, which is located just below it at the 3.3750 mark.
Due to that reason this isn’t a set up where one can simply enter. Instead a retail trader should look for the moment, when the mentioned resistance is finally passed. When that occurs, most likely a break out to the upside will occur.
Namely, the drawn junior ascending pattern was broken to the upside on April 20. Secondly, the pair continued the surge only being slowed down by the 200-SMA for a short period. The following surge broke past the medium scale pattern’s upper trend line.
On Tuesday morning Dukascopy analytics saw that the pair had stopped during the last 16 hours at the combined resistance of the most dominant pattern and the weekly R2. It was expected that the stalemate would end soon and the pair would break free soon.