USDHUF closes lower for the 2nd day in a row
US Dollar/Hungarian Forint (USDHUF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, USDHUF finished the week 0.23% higher at 309.7250 after tanking 18015 pips (-0.58%) today. This is the biggest single-day loss in over a month. Closing below Thursday's low at 310.0705, the FX pair confirmed its breakout through the prior session low after trading up to 13930 pips below it intraday.
Daily Candlestick Chart (USDHUF as at Feb 14, 2020):
Friday's trading range has been 32975 pips (1.06%), that's far above the last trading month's daily average range of 23291 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 slightly lower than usual for USDHUF.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 31st, USDHUF actually gained 0.22% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for USD/HUF. Out of 600 times, USDHUF closed higher 52.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.00% with an average market move of 0.34%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and CHFZAR closing -0.53% lower. Read more