USD/HUF may fall 233 - 327 pips

Our pivot point stands at 362.09.

Our preference

The downside prevails as long as 362.09 is resistance.

Alternative scenario

The upside breakout of 362.09, would call for 363.66 and 364.60.

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 361.93 and 362.20). Finally, the USD/HUF is trading below its lower Bollinger band (standing at 361.05).

Supports and resistances

364.60 **

363.66 *

362.09 **

361.47

360.79 last

358.46

357.52 **

356.58 *

355.65 **

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