By Orbex
USDPLN has seen attempts of breaking out from monthly highs hitting a plateau as bears take hold. Prices are currently finding resistance at the 23.6% of the 4.2432/3.6557 downside Fibonacci leg. In addition, the lower border of the Ichimoku cloud is highlighted as a confluence level of the said leg.
The bias remains to the downside as momentum wanes, with the next target being August’s lows. A recent bearish divergence has pulled prices down through the 38.2% from monthly highs.
Should another attempt to move towards cloud engulfment fail, then further downside is expected. As momentum increases, we will wait to see if further divergences become apparent.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
A short-term outlook shows the currency pair in a descending channel from the beginning of November. Prices are now clinging to the top border of the channel in an attempt for bulls to pounce on the direction.
A hidden and standard divergence could lead to a trend reversal, moving prices to monthly highs. However, with the Ichimoku cloud forming a resistance, then the recent rally to the upside could reverse and bring prices back down to the mean.
Should this occur, then we could see the descending channel continue, moving the trend lower to the mid-$3 range.
By Orbex
- US Fed tilts towards a rate cut despite the postponement. HKMA left the rate unchanged at 5.75% May 2, 2024
- Brent crude oil hits seven-week low May 2, 2024
- Target Thursdays: USDJPY, Copper & EURCAD May 2, 2024
- WTI oil declines on rising inventories and negotiations between Israel and Hamas. Rising unemployment in New Zealand may force RBNZ to start cutting rates earlier May 1, 2024
- Bitcoin stumbles below $60k ahead of Fed May 1, 2024
- Expert Says Now Looks Like a Good Time To Buy This Renewable Energy Stock Apr 30, 2024
- Optimism over corporate earnings is fueling stock indices. The Hong Kong index reached a 5-month high Apr 30, 2024
- FXTM’s Copper: Hits fresh two-year high! Apr 30, 2024
- European indices grow on the ECB’s “dovish” position. Quarterly reports of mega-companies support the broad market Apr 29, 2024
- Japanese yen shows volatility amid speculation of intervention Apr 29, 2024