HUFEUR breaks below key technical support level


Hungarian Forint/Euro (HUFEUR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team

Highlights

HUFEUR breaks below key technical support level
HUFEUR finds buyers again around 0.0028515
HUFEUR closes within previous day's range

Overview

HUFEUR finished the week 1.49% higher at 0.0028590 after losing 131 pips (-0.46%) today on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (HUFEUR as at May 22, 2020):

Daily technical analysis candlestick chart for Hungarian Forint/Euro (HUFEUR) as at May 22, 2020

Friday's trading range has been 224 pips (0.78%), that's slightly below the last trading month's daily average range of 252 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 HUFEUR.

One bearish candlestick pattern matches today's price action, the Black Candle.

Prices broke below the key technical support level at 0.0028693 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 0.0028540 in the prior session, the forex pair found buyers again around the same price level today at 0.0028515. The last time this happened on Monday, HUFEUR gained 0.98% on the following trading day.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Buying could speed up should prices move above the nearby swing high at 0.0028773 where further buy stops might get activated.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for HUF/EUR. Out of 457 times, HUFEUR closed higher 52.08% of the time on the next trading day after the market condition occurred.


Market Conditions for HUFEUR as at May 22, 2020

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