HUFEUR runs into sellers again around 0.0028409
Hungarian Forint/Euro (HUFEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HUFEUR ended Thursday at 0.0028210 losing 117 pips (-0.41%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HUFEUR as at Mar 26, 2020):
Thursday's trading range has been 499 pips (1.76%), that's slightly above the last trading month's daily average range of 433 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for HUFEUR. Prices continued to consolidate within a tight trading range between 0.0027873 and 0.0028723 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Hammer which are both known as bullish patterns. The last time a Bullish Hikkake Pattern showed up on February 12th, HUFEUR gained 0.63% on the following trading day.
Prices are trading close to the key technical support level at 0.0027873 (S1). After having been unable to move above 0.0028454 in the previous session, the pair ran into sellers again around the same price level today, missing to move higher than 0.0028409.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 0.0027873 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Its common bearish interpretation has been confirmed for HUF/EUR. Out of 776 times, HUFEUR closed lower 50.39% 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 10 trading days, showing a win rate of 53.22% with an average market move of -0.11%.