HUFEUR dominated by bears dragging the market lower throughout the day
Hungarian Forint/Euro (HUFEUR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, HUFEUR finished Wednesday at 0.0027836 losing 105 pips (-0.38%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 0.0027932, the market confirmed its breakout through the prior session low after trading up to 111 pips below it intraday.
Daily Candlestick Chart (HUFEUR as at Sep 16, 2020):
Wednesday's trading range has been 149 pips (0.53%), that's below the last trading month's daily average range of 208 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HUFEUR.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bearish Short Candle showed up on July 28th, HUFEUR actually gained 0.57% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to September's low at 0.0027648, downside momentum might speed up should the currency mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for HUF/EUR. Out of 67 times, HUFEUR closed higher 56.72% of the time on the next trading day after the market condition occurred.