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.
