EURPLN finds buyers at key support level
Euro/Polish Zloty (EURPLN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EURPLN ended the week -0.55% lower at 4.2497 after gaining 43 pips (0.1%) today. Trading up to 96 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURPLN as at Feb 14, 2020):
Friday's trading range has been 179 pips (0.42%), that's slightly below the last trading month's daily average range of 217 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURPLN.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish Hikkake Pattern showed up on February 4th, EURPLN actually lost -0.71% on the following trading day.
After trading down to 4.2367 earlier during the day, the currency bounced off the key technical support level at 4.2372 (S1). The failure to close below the support could increase that levels importance as support going forward. Unable to break through the key technical resistance level at 4.2527 (R1), EUR/PLN closed below it after spiking up to 4.2546 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for EUR/PLN. Out of 145 times, EURPLN closed higher 51.03% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.24% with an average market move of 0.19%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more