FxNews—The USD/PLN currency broke below the July 15 low (3.884) in the resumption of the downtrend, but the selling pressure eased when the pair hit the August 26 low at 3.805. As a result, the price bounced, and the broken resistance (3.884) was successfully tested on September 2.
As of this writing, the U.S. Dollar is trading at about 3.848 against the Polish Zloty, below the abovementioned resistance. The daily chart below shows the price and the key support and resistance levels.
USDPLN Technical Analysis – 5-September-2024
Zooming at the USD/PLN 4-hour chart, we notice that the price is below the 50- and 100-period simple moving average, meaning the primary trend is bearish.
- The awesome oscillator bars are red, below the signal line, and decreasing, indicating the bear market prevails.
- The stochastic oscillator value is 19, slightly inside the oversold territory, suggesting that the Polish Zloty is overpriced against the U.S. Dollar.
- The relative strength index (RSI) value is 37, nearing 30. This development suggests that the USD/PLN price could be oversold soon, and the market might consolidate near the upper resistance levels.
Overall, the technical indicators suggest the primary trend is bearish, and the downtrend will likely continue.
USDPLN Forecast – 5-September-2024
The primary trend is bearish because the price is below the 50- and 100-period SMA. That said, the USD/PLN price dipped below the immediate support at 3.848 in today’s trading session.
From a technical standpoint, the downtrend will likely resume and initially target 3.823 if the bears maintain a position below the July 15 low (3.884). Furthermore, if the selling pressure exceeds 3.823, the next support area will be the August low at 3.805.
Please note that the bearish outlook should be invalidated if the price exceeds the 3.884 critical resistance.
- Also read: USD/MXN Forecast – 5-September-2024
USDPLN Bullish Scenario – 5-September-2024
The key resistance level is 3.884. If the bulls push the price above this barrier, the uptick momentum that began this month could resume to the August 15 high at 3.913.
Furthermore, if the buying pressure exceeds 3.913, the next bullish target will likely be the August 8 low at 3.947.
USDPLN Support and Resistance Levels – 5-September-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: 3.823 / 3.805
- Resistance: 3.884 / 3.913 / 3.947
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.
