EUR/HUF may fall 132 - 195 pips

Our pivot point stands at 396.00.

Our preference

The downside prevails as long as 396.00 is resistance.

Alternative scenario

Above 396.00, look for 397.06 and 397.69.

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 395.88 and 396.23). Finally, the EUR/HUF has penetrated its lower Bollinger band (394.98).

Supports and resistances

397.69 **

397.06 *

396.00 **

395.59

394.89 last

393.57

392.94 **

392.31 *

391.69 **

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