EURHUF plummets -0.55% closing 19485 pips lower
Euro/Hungarian Forint (EURHUF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EURHUF finished the month 2.27% higher at 354.4590 after tanking 19485 pips (-0.55%) today. This is the biggest single-day loss in over a month. 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 Jun 30, 2020):
Tuesday's trading range has been 43770 pips (1.23%), that's far above the last trading month's daily average range of 26632 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EURHUF.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. In spite of a strong opening the currency closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on May 18th, EURHUF lost -0.97% on the following trading day.
After having been unable to move above 357.4550 in the prior session, the forex pair ran into sellers again around the same price level today, failing to move higher than 357.4820.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 347.7362.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EUR/HUF. Out of 85 times, EURHUF closed higher 54.12% 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 60.00% with an average market move of 0.30%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more