USD/HUF may fall 197 - 293 pips

Our pivot point stands at 367.26.

Our preference

The downside prevails as long as 367.26 is resistance.

Alternative scenario

The upside breakout of 367.26, would call for 368.87 and 369.83.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 366.67 and 367.94). Finally, the USD/HUF has penetrated its lower Bollinger band (365.17).

Supports and resistances

369.83 **

368.87 *

367.26 **

366.63

365.06 last

363.09

362.13 **

361.18 *

360.22 **

Number of asterisks represents the strength of support and resistance levels.