EUR/HUF may fall 120 - 176 pips

Our pivot point is at 397.42.

Our preference

The downside prevails as long as 397.42 is resistance.

Alternative scenario

Above 397.42, look for 398.35 and 398.90.

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 below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 397.78 and 397.79). Finally, the EUR/HUF is trading below its lower Bollinger band (standing at 396.66).

Supports and resistances

398.90 **

398.35 *

397.42 **

397.05

396.28 last

395.08

394.52 **

393.97 *

393.42 **

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