EURHUF finds buyers again around 347.9540
Euro/Hungarian Forint (EURHUF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EURHUF ended the week -1.47% lower at 349.7705 after gaining 15915 pips (0.46%) today on low volume. 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 May 22, 2020):
Friday's trading range has been 27440 pips (0.79%), that's slightly below the last trading month's daily average range of 31362 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURHUF.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 348.5150 (now S1), which is likely to act as support going forward. The last time this happened on March 16th, EURHUF gained 0.86% on the following trading day. After having been unable to move lower than 347.5520 in the previous session, the market found buyers again around the same price level today at 347.9540.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 347.5520 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for EUR/HUF. Out of 457 times, EURHUF closed lower 52.74% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more