USDHUF breaks below key technical support level
US Dollar/Hungarian Forint (USDHUF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, USDHUF ended Thursday at 321.3775 losing 28700 pips (-0.89%). Trading 32650 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 9th, USDHUF actually gained 1.03% on the following trading day. Closing below Wednesday's low at 322.8810, the pair confirmed its breakout through the previous session low after trading up to 27960 pips below it intraday.
Daily Candlestick Chart (USDHUF as at Mar 26, 2020):
Thursday's trading range has been 74275 pips (2.29%), that's slightly below the last trading month's daily average range of 75331 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for USDHUF.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices broke below the key technical support level at 321.6010 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for USD/HUF. Out of 397 times, USDHUF closed higher 52.90% 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 55.16% with an average market move of 0.36%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more