USD/HUF may rise 154 - 221 pips

365.12 is our pivot point.

Our preference

The upside prevails as long as 365.12 is support.

Alternative scenario

The downside breakout of 365.12 would call for 363.98 and 363.31.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 364.20 and 364.41). Finally, the USD/HUF has crossed above its upper Bollinger band (366.24).

Supports and resistances

370.63 **

369.95 *

369.27 **

368.60

367.06 last

365.56

365.12 **

363.98 *

363.31 **

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