EUR/HUF may fall 140 - 202 pips

Our pivot point stands at 393.47.

Our preference

The downside prevails as long as 393.47 is resistance.

Alternative scenario

The upside breakout of 393.47, would call for 394.51 and 395.13.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (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 393.40 and 393.53). Finally, the EUR/HUF has penetrated its lower Bollinger band (392.81).

Supports and resistances

395.13 **

394.51 *

393.47 **

393.06

392.54 last

391.14

390.52 **

389.90 *

389.28 **

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