EURHUF rises to highest close ever
Euro/Hungarian Forint (EURHUF) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EURHUF finished Thursday at 336.7005 gaining 5405 pips (0.16%). Today's close at 336.7005 marks the highest recorded closing price ever. Trading up to 7170 pips lower after the open, EUR/HUF managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 15th, EURHUF gained 0.66% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURHUF as at Jan 23, 2020):
Thursday's trading range has been 21070 pips (0.63%), that's slightly below the last trading month's daily average range of 23965 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for EURHUF. Prices continued to consolidate within a tight trading range between 333.8055 and 337.6200 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 335.2010 (S1). Unable to break through the key technical resistance level at 337.2895 (R1), the currency closed below it after spiking up to 337.6200 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.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EUR/HUF. Out of 74 times, EURHUF closed lower 60.81% 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 seven trading days, showing a win rate of 51.35% with an average market move of -0.11%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are EURUSD losing -0.34% and USDJPY closing -0.32% lower. On the flipside the best performers have been NZDUSD closing 0.38% higher and USDCHF gaining 0.11%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been NZDSGD surging 0.57% and USDPLN closing 0.53% higher. The worst performers of the day have been ZARJPY tanking -0.91% and EURNZD closing -0.72% lower. Read more