PLNEUR pushes through Wednesday's high
Polish Zloty/Euro (PLNEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PLNEUR finished Thursday at 0.2209 gaining 21 pips (0.96%). Closing above Wednesday's high at 0.2201, the pair confirmed its breakout through the previous session high after trading up to 19 pips above it intraday.
Daily Candlestick Chart (PLNEUR as at Mar 26, 2020):
Thursday's trading range has been 47 pips (2.15%), that's above the last trading month's daily average range of 32 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for PLNEUR.
After having been unable to move lower than 0.2170 in the prior session, the FX pair found buyers again around the same price level today at 0.2173. The last time this happened on Tuesday, PLNEUR gained 0.74% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for PLN/EUR. Out of 135 times, PLNEUR closed lower 53.33% 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 50.37% with an average market move of -0.04%.