EUR/HUF may fall 126 - 189 pips

394.29 is our pivot point.

Our preference

The downside prevails as long as 394.29 is resistance.

Alternative scenario

Above 394.29, look for 395.34 and 395.97.

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 is trading under both its 20 and 50 period moving average (respectively at 394.27 and 394.61). Finally, the EUR/HUF is trading below its lower Bollinger band (standing at 393.06).

Supports and resistances

395.97 **

395.34 *

394.29 **

393.87

392.78 last

391.52

390.89 **

390.27 *

389.64 **

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