PLNEUR finds buyers at key support level
Polish Zloty/Euro (PLNEUR) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
PLNEUR finished the week 0.09% higher at 0.2350 after flat today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PLNEUR as at Jun 14, 2019):
Friday's trading range has been 15 pips (0.64%), that's far above the last trading month's daily average range of 9 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PLNEUR.
Regardless of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on Tuesday, PLNEUR actually gained 0.17% on the following trading day. Additionally, six candlestick patterns are matching today's price action, the Gravestone Doji, the Last Engulfing Top Pattern and the Northern Doji which are known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After trading down to 0.2342 earlier during the day, the FX pair bounced off the key technical support level at 0.2342 (S1). The failure to close below the support might increase that levels importance as support going forward. Unable to break through the key technical resistance level at 0.2355 (R1), the pair closed below it after spiking up to 0.2357 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for PLN/EUR. Out of 53 times, PLNEUR closed higher 58.49% 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 50.94% with an average market move of 0.15%.