HUFEUR finds buyers at key support level
Hungarian Forint/Euro (HUFEUR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HUFEUR finished the month 3.02% higher at 0.0029063 after gaining 60 pips (0.21%) today. Today's close at 0.0029063 marks the highest recorded closing price since June 10th. Trading up to 78 pips lower after the open, HUF/EUR managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 0.0029023, the market confirmed its breakout through the prior session high after trading up to 77 pips above it intraday.
Daily Candlestick Chart (HUFEUR as at Jul 31, 2020):
Friday's trading range has been 178 pips (0.61%), that's slightly below the last trading month's daily average range of 206 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 HUFEUR.
After trading down to 0.0028922 earlier during the day, the forex pair bounced off the key technical support level at 0.0028953 (S1). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 0.0029104 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test June's nearby high at 0.0029157.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for HUF/EUR. Out of 174 times, HUFEUR closed higher 55.17% of the time on the next trading day after the market condition occurred.