USD/HUF may fall 157 - 227 pips

Our pivot point stands at 357.73.

Our preference

The downside prevails as long as 357.73 is resistance.

Alternative scenario

Above 357.73, look for 358.92 and 359.63.

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 is trading under both its 20 and 50 period moving average (respectively at 357.40 and 358.28). Finally, the USD/HUF has penetrated its lower Bollinger band (356.34).

Supports and resistances

359.63 **

358.92 *

357.73 **

357.26

355.97 last

354.40

353.70 **

352.99 *

352.28 **

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