FxNews—The U.S. dollar’s downtrend against the Polish Zloty eased near the key resistance level at 3.90, the May 2024 low. The robust bearish trajectory in the USD/PLN pair has driven the stochastic oscillator into the oversold territory in the daily chart. The image below demonstrates the price, key Fibonacci retracement levels, and the technical indicators utilized in today’s analysis.
USDPLN Technical Analysis – 16-July-2024
The technical indicators in the USD/PLN daily chart suggest the primary trend is bearish, but the Polish Zloty could be overpriced, and the U.S. Dollar might rise to erase some of its recent losses before the downtrend continues.
- The awesome oscillator bars are red with a value of -0.072, suggesting the bearish trend prevails.
- The relative strength index indicator value is 35, which is above the oversold area. This means the bulls are adding their bids to the market, and the price could rise.
- The stochastic oscillator is deep in the oversold area, with the %K value at approximately 8. This means the USD/PLN is oversold, and the price might bounce from this point.
USDPLN Forecast – 16-July-2024
The key resistance holding the price from dipping further is 3.9. Interestingly, the USD/PLN formed a hammer candlestick pattern in the daily chart, concurrently with the stochastic oscillator signaling a consolidation phase or trend reversal by hovering in oversold territory.
Therefore, from a technical standpoint, if the key resistance level at 3.90 holds, the USD/PLN price will likely rise to test the 23.6% Fibonacci level at 3.94. Furthermore, if the buying pressure exceeds 3.94, the bull’s (buyers) road to the 38.2% Fibonacci at 3.97 could be paved.
Please note that if the bears (sellers) push the price below 3.90, it could signal a resumption of the downtrend, but the market will still be oversold. Therefore, traders and investors should consider waiting patiently for the price to consolidate near the upper resistance levels and seek for bearish candlestick patterns before joining the bear market.
USDPLN Key Levels – 16-July-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 3.90
- Resistance: 3.941 / 3.972
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
