EURPLN still stuck within tight trading range
Euro/Polish Zloty (EURPLN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EURPLN finished Wednesday at 4.4482 edging lower 19 pips (-0.04%). Trading 76 pips higher after the open, EUR/PLN was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, EURPLN actually gained 0.10% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EURPLN as at Sep 16, 2020):
Wednesday's trading range has been 166 pips (0.37%), that's far below the last trading month's daily average range of 293 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURPLN. Prices continued to consolidate within a tight trading range between 4.4343 and 4.4615 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The forex pair ran into sellers again today around 4.4588 for the third trading day in a row after having found sellers at 4.4587 in the prior session and at 4.4552 two days ago.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 4.4615 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 4.4343 where further sell stops could get activated. As prices are trading close to September's high at 4.4771, upside momentum might accelerate should the FX pair mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for EUR/PLN. Out of 338 times, EURPLN closed lower 50.89% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more