USDPLN closes lower for the 3rd day in a row
US Dollar/Polish Zloty (USDPLN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, USDPLN finished Thursday at 4.1043 tanking 946 pips (-2.25%). This is the biggest single-day loss in over five years. The last time we've seen such an unusually strong single-day loss on March 9th, USDPLN actually gained 1.18% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 4.1717, the forex pair confirmed its breakout through the prior session low after trading up to 969 pips below it intraday.
Daily Candlestick Chart (USDPLN as at Mar 26, 2020):
Thursday's trading range has been 1366 pips (3.25%), that's above the last trading month's daily average range of 985 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for USDPLN.
One bearish candlestick pattern matches today's price action, the Black Candle.
The trend is clearly bullish, showing an intact uptrend 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) below 20" stand out. Its common bullish interpretation has been confirmed for USD/PLN. Out of 306 times, USDPLN closed higher 54.25% 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 55.56% with an average market move of 0.41%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more