EURHUF tumbles, losing 21940 pips (-0.65%) within a single day
Euro/Hungarian Forint (EURHUF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EURHUF finished the week -0.82% lower at 335.4725 after tanking 21940 pips (-0.65%) today. This is the biggest single-day loss in over a month. Today's close at 335.4725 marks the lowest recorded closing price since January 21st. Closing below Thursday's low at 336.9585, the pair confirmed its breakout through the prior session low after trading up to 21620 pips below it intraday.
Daily Candlestick Chart (EURHUF as at Feb 14, 2020):
Friday's trading range has been 32440 pips (0.96%), that's far above the last trading month's daily average range of 21725 pips. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for EURHUF.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 333.8055 (S1). The forex pair closed below the 20-day moving average at 337.0302 for the first time since January 6th. When this moving average was crossed below the last time on January 2nd, EURHUF actually gained 0.35% on the following trading day.
While the FX pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for EUR/HUF. Out of 393 times, EURHUF closed lower 54.71% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been USDHUF tanking -0.58% and CHFZAR closing -0.53% lower. Read more