PLNEUR unable to break through key resistance level
Polish Zloty/Euro (PLNEUR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
PLNEUR finished the week 0.56% higher at 0.2353 after losing 2 pips (-0.08%) today. Trading 5 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below 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 (PLNEUR as at Feb 14, 2020):
Friday's trading range has been 10 pips (0.42%), that's slightly below the last trading month's daily average range of 12 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 PLNEUR.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on February 4th, PLNEUR actually gained 0.73% on the following trading day.
Unable to break through the key technical resistance level at 0.2359 (R1), the market closed below it after spiking up to 0.2360 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 0.2342 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for PLN/EUR. Out of 106 times, PLNEUR closed lower 49.06% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.66% with an average market move of -0.19%.