The technical picture of EUR/HUF on our daily chart shows that after a strong decline in the first half of March, the pair started consolidating and forming a possible descending triangle. Such a pattern is seen as a bearish one, however, until we see a break below the 369.00 hurdle, which is the lower side of that triangle, we will remain cautiously bearish.
A drop below that hurdle will confirm a forthcoming lower low, potentially opening the door towards lower areas. EUR/HUF may then travel to the 364.50 obstacle, a break of which might set the stage for a move to the 362.00 level. That level is marked by the inside swing high of January 24th.
The RSI is pointing higher, while sitting slightly above 50. The MACD is flat and remains slightly above zero, while continuing to run below the signal line. Given that the two indicators are not giving us a clear indication of direction, we will not put too much emphasis on them and stick to support and resistance barriers instead.
Alternatively, if the rate breaks above the upper side of the triangle and then rises above the 376.50 zone, marked by the high of March 18th, that may open the door towards the 382.80 hurdle, marked by the high of March 11th, where a temporary hold-up might occur. However, if the buying doesn’t end there, the next possible target could be at 387.60, marked by the high of March 9th.
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