PLNUSD dominated by bulls lifting the market higher throughout the day
Polish Zloty/US Dollar (PLNUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PLNUSD ended Thursday at 0.2436 surging 54 pips (2.27%). This is the biggest single-day gain in over five years. The last time we've seen such an unusually strong single-day gain on March 9th, PLNUSD actually lost -1.13% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 0.2397, the forex pair confirmed its breakout through the prior session high after trading up to 57 pips above it intraday.
Daily Candlestick Chart (PLNUSD as at Mar 26, 2020):
Thursday's trading range has been 79 pips (3.32%), that's above the last trading month's daily average range of 60 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 significantly higher than usual for PLNUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for PLN/USD. Out of 302 times, PLNUSD closed lower 52.98% 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 55.63% with an average market move of -0.34%.