Since 2,5 months Polish zloty has appreciated to other currencies. Today second of the biggest rating agencies warned that political risk can lead to deterioration of the investment climate. USDPLN performs head and shoulders pattern and falls may reach to 3.6200 (range after formation’s breakout). However supply will has a problem earlier. Nearest supports: 3.7000, 3.6760, 3.6540, 3.6200.
If rebound occurs there will be two scenarios:
- movement in consolidation between 3.6200 – 3.8200
- breakout resistance at 3.8200 which will start new uptrend wave.
For the bulls important resistance is located at 3.8200 – 3.8400. This area will stop bulls for some time and only break above it, will give real chance to new uptrend movement. Currently short positions don’t have sense because current downward movement is too far.
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