PLNEUR closes above its opening price after recovering from early selling pressure
Polish Zloty/Euro (PLNEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PLNEUR ended the month 0.04% higher at 0.2249 after gaining 5 pips (0.22%) today. Trading up to 8 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. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PLNEUR as at Jun 30, 2020):
Tuesday's trading range has been 16 pips (0.71%), that's slightly below the last trading month's daily average range of 18 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PLNEUR. Prices continued to consolidate within a tight trading range between 0.2234 and 0.2253 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
After trading down to 0.2237 earlier during the day, the currency bounced off the key technical support level at 0.2242 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 25th, PLNEUR actually lost -0.36% on the following trading day. After spiking up to 0.2253 during the day, PLN/EUR found resistance at the 20-day moving average at 0.2249. After having been unable to move lower than 0.2235 in the previous session, the FX pair found buyers again around the same price level today at 0.2237.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 0.2257 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 0.2234 where further sell stops might get activated. As prices are trading close to June's low at 0.2231, downside momentum could accelerate should the pair mark new lows for the month.
Among the nine 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 102 times, PLNEUR closed lower 49.02% 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 55.88% with an average market move of -0.13%.