EURHUF closes lower for the 3rd day in a row
Euro/Hungarian Forint (EURHUF) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EURHUF finished the month -2.93% lower at 344.0815 after losing 7160 pips (-0.21%) today. Today's close at 344.0815 marks the lowest recorded closing price since June 10th. Trading 9235 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 344.5505, the currency confirmed its breakout through the previous session low after trading up to 9135 pips below it intraday.
Daily Candlestick Chart (EURHUF as at Jul 31, 2020):
Friday's trading range has been 21200 pips (0.61%), that's below the last trading month's daily average range of 25374 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURHUF.
Prices are trading close to the key technical support level at 343.5950 (S1). Unable to break through the key technical resistance level at 345.3885 (R1), the market closed below it after spiking up to 345.7570 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Wednesday, EURHUF lost -0.10% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further selling could move prices lower should the market test June's nearby low at 342.9720.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for EUR/HUF. Out of 175 times, EURHUF closed lower 56.57% 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 NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more