HUFEUR closes within previous day's range
Hungarian Forint/Euro (HUFEUR) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, HUFEUR ended the week -0.86% lower at 0.0027740 after edging lower 11 pips (-0.04%) today. Today's close at 0.0027740 marks the lowest recorded closing price since April 6th. Trading 93 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HUFEUR as at Sep 18, 2020):
Friday's trading range has been 162 pips (0.58%), that's slightly below the last trading month's daily average range of 197 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HUFEUR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, five candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Gravestone Doji and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Rickshaw-Man showed up on May 4th, HUFEUR gained 0.93% on the following trading day.
Prices are trading close to the key technical support level at 0.0027648 (S1). After having been unable to move lower than 0.0027675 in the prior session, the forex pair found buyers again around the same price level today at 0.0027676.
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 0.0027675 where further sell stops might get activated. As prices are trading close to September's low at 0.0027648, downside momentum could speed up should HUF/EUR mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Long-Legged Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for HUF/EUR. Out of 62 times, HUFEUR closed lower 59.68% 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 nine trading days, showing a win rate of 51.61% with an average market move of -0.08%.